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HomeFinancial CodeDiv. 15.5Ch. 1Art. 3§ 32218 Cost-Benefit Investment Standard

§ 32218 Cost-Benefit Investment Standard

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 32218 Cost-Benefit Investment Standard

Key Takeaways

  • •This rule is about making sure a project or investment is worth the money spent.
  • •It means the good stuff (like saving money or getting benefits) must be more than the bad stuff (like costs).
  • •If something costs more than it helps, it’s not a good idea.

Example

A school wants to buy new computers for students.

If the computers help kids learn better and save money in the long run (like not buying textbooks), but they cost a lot upfront, the school checks if the good stuff (better learning, saving money later) is more than the cost of the computers. If yes, it’s a good idea. If no, they shouldn’t buy them.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 32218 Cost-Benefit Investment Standard

“Minimum economic feasibility” means that the net savings or benefits of an investment exceed the net costs. (Added by Stats. 1980, Ch. 819, Sec. 1.)

Last verified: January 23, 2026

Key Terms

minimum economic feasibilitynetbenefitinvestment

Related Statutes

  • § 22064 Tax-Exempt Investment Exemptions
  • § 32216 Energy Savings Investment Ratio
  • § 22066 Nonprofit Small Dollar Loans
  • § 22104 Finance Lender Net Worth
  • § 5304 Savings Association Bribery Prohibition

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 32218.
View Official Source