Sample Business Case Template (Page 14 of 18) in pdf

Sample Business Case Template Page 14

A sample of a Summary Cost Benefit Template:

Summary of Quantitative Cost/Benefit

Viable

Alternative 1

Alternative 2

Alternative 3

Present Value of Total Benefits:

Present Value of Total Costs:

Net Present Value of Project

Sample Costing Template for each Viable Alternative:

Quantitative Analysis –

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Viable Alternative 1

Benefits:

Revenue

Costs:

Analysis

Design

Implementation

Ongoing Operational Costs:

Human Resources

Administration

Net Benefit or Cost of Viable

Alternative 1

Net Present Value

(xx% Discount Rate)

Analysis:

A “Net Present Value” calculation is used to account for the fact that $1 today is not worth the same as $1 five

years from now, due to inflation and interest rates. The use of a “Net Present Value” calculation should be used to

take into account the time value of money, for regardless of whether the full or incremental cost approach is used.

If there are some assumptions that have a significant impact on the cost or benefit, a sensitivity analysis should be

presented. Contingency allowances or interest rate premiums should be used to account for differences in

certainty/risk. The cost/benefit analysis should be reviewed for reasonableness through the use of benchmarks,

other organization’s experience, industry data etc. This would include the use of a public sector comparator for

public-private partnership projects.

BUSINESS CASE – [PROJECT NAME]

PAGE

Sample Business Case Template Page 14