Cost Benefit Analysis Worksheet

Company Letterhead

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Phone: {{phone}}

Email: {{email}}

Website: {{website}}

Document Information

**Document Title:** Cost Benefit Analysis Worksheet

**Document ID:** {{document_id}}

**Version:** {{version_number}}

**Date Prepared:** {{date_prepared}}

Project/Decision Overview

**Project/Decision Name:** {{project_name}}

**Project Description:** {{project_description}}

**Analysis Conducted By:** {{analyst_name}}

**Department/Division:** {{department}}

**Analysis Period:** {{start_date}} to {{end_date}}

Identification of Costs

This section identifies and quantifies all relevant costs associated with the project or decision. Costs should be categorized as initial (start-up) or ongoing (operational).

**A. Tangible Costs (Quantifiable in monetary terms)**

* **Initial Costs:**

* Equipment Purchase: {{equipment_cost}}

* Software Licenses: {{software_license_cost}}

* Installation/Setup: {{installation_cost}}

* Training: {{training_cost}}

* Consulting Fees: {{consulting_fees}}

* Marketing/Promotional (Initial): {{initial_marketing_cost}}

* Other Initial Costs (Specify): {{other_initial_costs_description}}: {{other_initial_costs_amount}}

* **Total Initial Tangible Costs:** {{total_initial_tangible_costs}}

* **Ongoing Costs (Per {{period_unit}}, e.g., month, year):**

* Personnel Salaries/Wages: {{personnel_costs}}

* Maintenance & Support: {{maintenance_cost}}

* Operating Supplies: {{operating_supplies_cost}}

* Utilities: {{utilities_cost}}

* Rent/Lease: {{rent_lease_cost}}

* Insurance: {{insurance_cost}}

* Marketing/Promotional (Ongoing): {{ongoing_marketing_cost}}

* Opportunity Costs (e.g., foregone revenue from alternative projects): {{opportunity_cost}}

* Other Ongoing Costs (Specify): {{other_ongoing_costs_description}}: {{other_ongoing_costs_amount}}

* **Total Ongoing Tangible Costs:** {{total_ongoing_tangible_costs}}

Identification of Benefits

This section identifies and quantifies all relevant benefits derived from the project or decision. Benefits should be categorized as tangible (quantifiable) or intangible (qualitative).

**A. Tangible Benefits (Quantifiable in monetary terms)**

* Increased Revenue: {{increased_revenue}}

* Cost Savings/Reductions: {{cost_savings}}

* Improved Efficiency (monetary value): {{efficiency_monetary_value}}

* Increased Productivity (monetary value): {{productivity_monetary_value}}

* Asset Value Appreciation: {{asset_appreciation}}

* Tax Benefits/Credits: {{tax_benefits}}

* Other Tangible Benefits (Specify): {{other_tangible_benefits_description}}: {{other_tangible_benefits_amount}}

* **Total Tangible Benefits:** {{total_tangible_benefits}}

**B. Intangible Benefits (Qualitative, non-monetary)**

* Improved Customer Satisfaction: {{customer_satisfaction_benefits}}

* Enhanced Brand Reputation: {{brand_reputation_benefits}}

* Increased Employee Morale: {{employee_morale_benefits}}

* Better Regulatory Compliance: {{regulatory_compliance_benefits}}

* Strategic Advantage: {{strategic_advantage_benefits}}

* Reduced Risk: {{risk_reduction_benefits}}

* Enhanced Data Security: {{data_security_benefits}}

* Other Intangible Benefits (Specify): {{other_intangible_benefits_description}}

Cost-Benefit Calculation

This section calculates the overall financial viability by comparing total costs to total benefits.

**Total Tangible Costs (Initial + Ongoing for analysis period):** {{overall_total_tangible_costs}}

**Total Tangible Benefits (for analysis period):** {{overall_total_tangible_benefits}}

**Net Tangible Benefit (Total Tangible Benefits - Total Tangible Costs):** {{net_tangible_benefit_amount}}

**Benefit-Cost Ratio (Total Tangible Benefits / Total Tangible Costs):** {{benefit_cost_ratio}}

**Return on Investment (ROI) = (Net Tangible Benefit / Total Tangible Costs) x 100:** {{roi_percentage}}%

Risk Analysis

Identify and assess potential risks associated with the project/decision that could impact costs or benefits.

**Identified Risks:**

* Risk 1: {{risk_1_description}} (Likelihood: {{risk_1_likelihood}}, Impact: {{risk_1_impact}})

* Risk 2: {{risk_2_description}} (Likelihood: {{risk_2_likelihood}}, Impact: {{risk_2_impact}})

* Risk 3: {{risk_3_description}} (Likelihood: {{risk_3_likelihood}}, Impact: {{risk_3_impact}})

**Mitigation Strategies:**

* Strategy 1: {{mitigation_strategy_1}}

* Strategy 2: {{mitigation_strategy_2}}

Sensitivity Analysis

Evaluate how changes in key assumptions (e.g., cost estimates, benefit projections) might affect the net benefit or ROI.

**Scenario 1 (Worst-Case):** {{worst_case_assumptions}} - Net Benefit: {{worst_case_net_benefit}}

**Scenario 2 (Best-Case):** {{best_case_assumptions}} - Net Benefit: {{best_case_net_benefit}}

**Key Uncertainties:** {{key_uncertainties}}

Conclusion and Recommendation

Based on the analysis, provide a conclusive summary and offer a recommendation.

**Summary of Findings:** {{summary_of_findings}}

**Recommendation:** {{recommendation_statement}}

**Justification for Recommendation:** {{justification}}

Approval

Approved By:

____________________________

{{approver_name}}

{{approver_title}}

Date: {{approval_date}}

Signature Block

Prepared By:

____________________________

{{preparer_name}}

{{preparer_title}}

Date: {{signature_date}}