Conversions That Make Cents

If you are not driving already, you probably will be soon. And in the near future, you may be faced with the task of buying a car.

In the business world, people use a system called cost-benefit analysis to help them make buying decisions about cars, equipment or other goods. Typically, a cost-benefit analysis is used to figure out either how much money will be saved or how much the change will cost.

For example, in deciding whether to buy an energy-efficient air conditioner, a homeowner may consider the cost to buy and install the new unit, the savings on electricity bills and maintenance (operating costs), and how long the unit will probably last (useful life). Mr. and/or Ms. Homeowner would compare these costs with the equivalent figures for staying with their current air conditioner.