Cost Benefits Analysis Template
What is Cost Benefits Analysis Template?
A CostBenefit Analysis (CBA) template is a tool used to evaluate the feasibility of a project or decision by comparing its costs with its benefits. It helps organizations make informed decisions by quantifying the potential advantages and disadvantages of a particular course of action.Here's a typical CBA template:
Costs
 Initial Investment: The upfront costs associated with implementing the project, such as equipment purchases, training, or software licenses.
 Ongoing Expenses: Regular expenses incurred during the project's lifespan, including maintenance, personnel salaries, and other operational costs.
 Opportunity Costs: The potential benefits foregone by investing in this project instead of using those resources for another opportunity.
Benefits
 Monetary Benefits: Quantifiable financial advantages, such as increased revenue, reduced expenses, or cost savings.
 NonMonetary Benefits: Intangible benefits, like improved customer satisfaction, enhanced reputation, or environmental sustainability.
 Risk Reduction: The potential reduction of risks associated with the project, such as market fluctuations, regulatory changes, or unforeseen events.
Calculation
 CostBenefit Ratio: Divide the total costs by the total benefits to determine the ratio. A higher ratio indicates a more beneficial investment.
 Net Present Value (NPV): Calculate the present value of the benefits and subtract the present value of the costs to determine the NPV.
 Internal Rate of Return (IRR): Determine the rate at which the project's net cash inflows equal its net cash outflows.
Evaluation
 CostBenefit Comparison: Compare the costs with the benefits to determine whether the investment is justified.
 Sensitivity Analysis: Analyze how changes in assumptions or variables affect the CBA results.
 BreakEven Analysis: Determine at what point the project's cash inflows equal its cash outflows.
Example of a CostBenefit Analysis Template:
Costs  Benefits 
—  — 
Initial Investment: $100,000  Monetary Benefit: Increased revenue ($150,000) 
Ongoing Expenses: $50,000/year  NonMonetary Benefit: Improved customer satisfaction (25% increase in repeat business) 
Opportunity Cost: Foregone investment opportunity ($75,000)  Risk Reduction: Reduced regulatory risk (10%) 
In this example, the project's costs total $150,000 per year, while its benefits include increased revenue of $150,000 and improved customer satisfaction. The CBA template helps evaluate whether the investment is justified by comparing these costs with benefits.
By using a CostBenefit Analysis template, organizations can make informed decisions about investments, projects, or strategic initiatives that align with their goals and objectives.
CostBenefit Analysis Template
Project Overview
Project Name: Project Manager: Analysis Prepared By: Date:
Executive Summary
Provide a brief overview of the project, the costs involved, and the expected benefits.
Cost Analysis
Initial Costs
 Capital Costs:
 Description:
 Amount:
 Operating Costs:
 Description:
 Amount:
Recurring Costs
 Maintenance Costs:
 Description:
 Amount:
 Other Operational Costs:
 Description:
 Amount:
Benefit Analysis
Tangible Benefits
 Increased Revenue:
 Description:
 Amount:
 Cost Savings:
 Description:
 Amount:
Intangible Benefits
 Improved Customer Satisfaction:
 Description:
 Impact Measurement:
 Enhanced Employee Productivity:
 Description:
 Impact Measurement:
Net Present Value (NPV)
Calculate the NPV of the project using the formula: $$ NPV = \sum_{t=1}^{n} \frac{R_t  C_t}{(1 + i)^t} $$ Where:
 ( R_t ) = Net cash inflow during the period t
 ( C_t ) = Total cash outflow during the period t
 ( i ) = Discount rate
 ( t ) = Number of time periods
NPV Calculation:
Return on Investment (ROI)
Calculate the ROI using the formula: $$ ROI = \frac{Net \ Benefits}{Cost \ of \ Investment} \times 100 $$ ROI Calculation:
Conclusion
Summarize the findings of the CBA and provide recommendations based on the analysis.
Appendices
Include any additional charts, graphs, or detailed calculations used in the analysis.
Related:
External links:
 Free Cost Benefit Analysis Templates Smartsheet —smartsheet.com
 Download free cost benefit analysis templates for Excel and Word. Create a comprehensive report, or use template tools to simply calculate your analysis.
 Cost Benefit Analysis Template for Excel (Free Download) —projectmanager.com
 Use our free cost benefit analysis template for excel to crunch the numbers on your project and determine if the expenses are justified.

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