Cost-Benefit Analysis Template printable pdf download

Cost-Benefit Analysis Template

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INTRODUCTION

A cost-benefit analysis (CBA) is a systematic process for calculating and comparing benefits and

costs of a project or decision. A CBA helps predict whether the benefits of a project or decision

outweigh its costs, and by how much relative to other alternatives. A CBA has two purposes:

1. To determine if the project or decision is a sound investment or decision (i.e., a justification

of feasibility or advantage).

2. To provide a basis for comparing projects or decisions. It involves comparing the total

expected cost of each option against the total expected benefits, to see whether the benefits

outweigh the costs, and by how much.

Using the cost-benefit analysis template in this document will provide cost and benefit information

that can be used to analyze and evaluate alternative approaches to projects or decisions. Since this

CBA is tailored for IT, it is oriented around projects or decisions relating to new systems or

processes (although it can be adapted for other purposes).

NOTE: Highlighted, italicized text throughout this template is provided to assist you in creating your

cost-benefit analysis. Please delete all such text, as well as the instructions in each section, prior to

completing this document.

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1. EXECUTIVE SUMMARY

1.1

Project Description Overview

[Include a one-paragraph description of the associated project/program. This can be obtained from

other documents such as a project proposal or Request for Proposal (RFP).]

1.2

Recommendation

Based on the cost-benefit analysis presented below, the following is recommended [for example:



The outcome of the analyzed project or decision should be X.



The project or decisions described below should/should not be pursued.]

1.3

Supporting Reasons

The reasons for this recommendation are as follows [for example:



The financial costs of executing this project or decision outweigh the estimated return on

investment.



Although the financial costs and benefits are equal, the intangible benefits outweigh the

financial costs, for the following reasons:]

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Cost-Benefit Analysis Template