Financial analysis techniques are tools that help managers make sound financial decisions that contribute to general corporate objectives. A literature review reveals that the most commonly used financial analysis techniques are payback time, average rate of return, present value or present worth, and internal rate of return. Despite the success of several experiments using financial analysis techniques in training and development, only a few financial analysis studies and models have been published. Much of the material that has been published to date focuses only on costs and advocates making decisions only on the basis of costs; however, it is clear that economic decisions must be made on the basis of both costs and returns for the life of the project. Two major recurring omissions in existing cost-benefit studies are the tendency to leave out the indirect costs to the firm such as depreciation of capital and foregone interest and the pattern of not discounting costs and benefits over the life of the project. Only two references address benefits that might accrue to individual trainees. Furthermore, unlike cost-benefit estimates of public investments, which are almost always done as forecasts to guide decision makers and to rank programs, most financial analyses of training and development are done after the training has been completed. Any model developed should be suitable for following actual dollars and for predicting costs and returns. (MN)