The cost-benefit analysis is a technique for assisting with decision about the use of society"s scare resources. There exists no detailed assessment like cost-benefit analysis. But recently, many policy analysts criticized the merit of cost-benefit analysis. As it is, it can be said that partial or approximate estimates of benefit and cost may be more dangerous than helpful. The purpose of this study is to overcome the limit of traditional cost-benefit analysis. For this purpose, we use the system dynamics approach for setting up new cost-benefit analysis, which we named that ‘Dynamics Cost-Benefit Analysis". The usefulness of ‘Dynamics Cost-Benefit Analysis" is as follows; finding structural causal relationship between cost factors and benefit factors, understanding the long-term behavior of systems economic feasibility. In this study, we apply "Dynamic Cost-Benefit Analysis" to case that is construction investment of funeral house by local government sector