entially this means that if an organization were to initiate a project, it would first investigate the costs associated with it, then would proceed if the benefits actually outweighed the costs associated with it.A good example of the use of CBA is demonstrated in a case within the Environmental Protection Agency (EPA). This is a case where the EPA uses "benefit-cost analysis" to aid in setting policy for acts pertaining to environmental protection. According to Farrow and Toman (1999), the EPA has developed a strategic plan as a part of its GPRA (Government Performance and Results Act) program, in which benefit-cost analysis has its own chapter. In this case, the EPA examines a reduction in the risk of premature death as one of the principal benefits of many of their environmental measures (Farrow & Toman 1999).Cost Effective AnalysisAnother part of cost analysis is cost-effective analysis (CEA). CEA, as defined by Goldston (1998), provides a means for identifying the most effective use of limited resources to assist decision-makers about whether a specific program or an alternative one is worth the investment of resources when compared to other uses to which the same resources could be allocated. Often the medical and biotech industry utilizes the methods of CEA to determine the feasibility of certain programs or prevention methods. The National Center for Environmental Health, Centers for Disease Control and Prevention, utilized a CEA to find the cost effectiveness of general and targeted strategies for residential radon testing and mitigation in the United States (Ford et al 1999). In this case, the study modeled a decision tree of five possible alternatives. After careful analysis, it was concluded that other means should be explored. As stated by Ford, "these data suggest possible alternatives to current recommendations." The study concluded that the costs were too great to mount an effective campaign.Return on Investment ...
