Which of the following is NOT one of the three ways to determine cost effectiveness?

Determining cost effectiveness involves analyzing different financial metrics to assess how efficiently resources are used in achieving certain outcomes. The correct choice of 'D' refers to profit margin analysis, which primarily focuses on a business's profitability rather than evaluating the effectiveness of costs relative to benefits in a safety or project context.

Net present value (NPV) is a method that assesses the value of cash flows over time by discounting them back to their present value. This approach enables decision-makers to understand the long-term financial implications of investments. Benefit/cost ratio evaluates the relationship between the benefits gained and the costs incurred, with a ratio greater than one indicating that benefits exceed costs, thus suggesting a favorable outcome for investments. Cost effectiveness evaluation compares the relative costs of achieving specific objectives, commonly used in public health and transportation projects to determine the most efficient option among competing alternatives.

In contrast, profit margin analysis measures the profitability of a company by comparing its revenue to its expenses, which does not provide insights into the effectiveness of costs concerning benefits in the context of road safety or similar assessments. Therefore, it is not one of the three recognized ways to analyze cost effectiveness in this field.