Because society cannot afford to waste its scare resources, judging whether a particular program is worth its cost is a constant problem in public-program choice. Cost-benefit analysis provides a way of organizing information about a program under consideration so that priorities may be reasonably established. A private firm considers a major project(say, the purchase of a new delivery truck to replace an older, smaller one) and compares the anticipated increase in revenue from the new truck with the anticipated increase in costs. If the revenue exceeds cost, the purchase of the truck is a wise use of the firm’s scarce resources; if not, the purchase is unwise.