Generolo Jono Žemaičio Lietuvos karo akademija

This paper explores the potential applications of cost-benefit analysis in the evaluation of investments in military technology. The study assesses the limitations of cost-benefit analysis (CBA) in the defence sector and discusses ways to adapt its methodology so that it better reflects the specific characteristics of defence planning, the uncertainty of the security environment, and the operational realities of the armed forces. Using selected simplified model examples, the paper demonstrates that CBA cannot serve as a mechanical tool for optimal decision-making; however, it can significantly contribute to structuring the decision-making problem, transparently comparing alternatives, and supporting allocation-rational decision-making, including the monetization of intangible outputs in the context of defence.