Cost-benefit analysis (CBA) is a method used to make business and economic-based decisions. CBA can be used to judge a single option, or compare two or more options to select the most optimal alternative.CBA consists of estimating all the costs of a particular decision, then comparing them to the estimated benefits of that decision. CBA is not exclusive to business, as governments use it to evaluate different policy choices. CBA can be performed using very sophisticated financial models that take into account not only tangible costs and benefits, but also factor in hard to quantify intangibles such as employee morale and customer satisfaction. Another cost included in a CBA is the opportunity cost of not pursuing other alternatives. For instance, ABC, Inc. plans to build a new production facility. A CBA will consider the cost to build the new project against the benefits of added productivity from a modern plant. The CBA might also include other benefits such as an increase in employee morale. Individuals do CBA as well, though not always consciously. For example, the decision to remodel a kitchen is a CBA. The homeowner calculates the additional value to his home, along with the intangible value of using an improved kitchen, and compares it to the remodel cost. Another cost the homeowner may consider is the opportunity cost of not using the remodeling funds for other purposes, such as his children’s college fund. If the benefits exceed the costs, the kitchen will get a much-needed remodel.