Which method should be used to compare costs to outcomes when evaluating a new program's value and consider long-term sustainability?

• A. Cost-benefit analysis
• B. ROI analysis
• C. Break-even analysis
• D. SWOT analysis

Answer: (A)

When you're evaluating a new program's value and its long-term viability, you want a method that weighs costs and outcomes in a common unit over time. Cost-benefit analysis does exactly that by monetizing both the costs and the benefits of a program and comparing them across a chosen time horizon. It provides a net benefit or net present value, showing whether the total benefits exceed the total costs when future amounts are properly discounted to their present value. This approach directly addresses sustainability, since it highlights whether benefits persist over time and by how much, under different assumptions.

In contrast, return on investment focuses on the ratio of net gain to cost but can miss the timing of cash flows and may overlook non-monetary or long-term outcomes. Break-even analysis looks at the point where revenues equal costs, which tells you nothing about overall value or long-term impact. SWOT analysis is a qualitative strategic assessment that doesn’t quantify costs and benefits for comparison.