Develop a Cost-Benefit Analysis Framework for Projects
Objective:
– – Create a standardized framework for conducting cost-benefit analyses for proposed projects.
– – Objectively evaluate financial viability and strategic alignment of investments.
– – Support informed decision-making and resource allocation.
Description
Expected Inputs:
– – [Type of Projects to Analyze: e.g., IT infrastructure upgrades, Marketing campaigns, New facility construction, R&D initiatives]
– – [Key Cost Categories: e.g., Initial investment, Operating expenses, Maintenance, Training]
– – [Key Benefit Categories: e.g., Revenue increase, Cost savings, Efficiency gains, Risk reduction, Compliance]
– – [Required Metrics for Calculation: e.g., ROI, Payback Period, Net Present Value (NPV)]
– – [Decision Thresholds (optional): e.g., Minimum ROI, Max Payback Period]
Results:
– – A detailed framework outlining steps for conducting a CBA.
– – Templates for categorizing and quantifying costs and benefits.
– – Formulas and guidance for calculating key financial metrics.
– – A decision-making matrix incorporating financial and strategic factors.