What is a cost-benefits analysis example?

An example of cost-benefits analysis is a project that is estimated to cost $500,000 and estimated to produce a $550,000 profit. In this example, the manager has added up all of the costs of the equipment, materials, and work hours of the project, which resulted in $500,000.

Then, he estimated that the project would earn $550,000 in profit based on the number of sales it would create. Finally, he divided $550,000 in benefits by $500,000 in cost, getting a cost-benefit ratio of 1:1.1.