In feasibility study, what does a cost benefit analysis primarily do for an information system proposal?

Introduction / Context:
Before committing funds, organizations evaluate whether a proposed system is worth doing. Cost benefit analysis is a feasibility technique that weighs all expected costs against all expected benefits to support go or no go decisions.

Given Data / Assumptions:

• Project has identifiable development and operating costs.
• Benefits may be monetary or non monetary, such as error reduction or compliance.
• Decision makers need a defensible comparison over a planning horizon.

Concept / Approach:
Comprehensive cost benefit analysis includes capital costs, operating costs, training, change management, and risk allowances, compared with benefits such as labor savings, faster cycle times, improved quality, and regulatory assurance. Financial measures may include NPV, IRR, and payback, but qualitative advantages are also documented.

Step-by-Step Solution:

Verification / Alternative check:
If the activity looks only at acquisition costs or server benchmarks, that is not a full feasibility comparison. The correct activity explicitly compares costs to benefits, both tangible and intangible.

Why Other Options Are Wrong:

Common Pitfalls:
Underestimating change management and support costs and over claiming soft benefits are frequent problems.

Final Answer:
Compares total expected costs against total expected benefits including tangible and intangible effects.