Which method is typically used to analyze the cost-effectiveness of a proposed solution?

The method that is typically used to analyze the cost-effectiveness of a proposed solution is Cost-Benefit Analysis. This method involves evaluating the financial costs associated with a project or solution against the anticipated benefits, allowing teams to make informed decisions based on quantitative data. By comparing the total expected costs to the total expected benefits, stakeholders can determine whether a proposed solution is financially viable and worth implementing.

Cost-Benefit Analysis provides a structured approach to assess not only the monetary implications but also helps in aligning the solution with organizational goals. It quantifies the return on investment, enabling a clearer understanding of the potential value that the solution offers.

In contrast, SWOT Analysis focuses on identifying strengths, weaknesses, opportunities, and threats related to a project or organization, serving more as a strategic planning tool rather than a financial analysis method. A Feasibility Study assesses whether a project is achievable and what it would take to implement, but it does not specifically focus on comparing financial returns versus costs. Lastly, Risk Assessment identifies potential risks involved in a project, evaluating their impact and probability, but does not focus specifically on cost-effectiveness. Thus, Cost-Benefit Analysis stands out as the appropriate method for assessing the financial viability of a proposed solution.