Project Proposal Title
Company Name
Cost Benefit Analysis
Author:
Date:
Version:
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Date Created
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© Global Knowledge Training LLC
Table of Contents
Purpose ........................................................................................................................................... 5
Scope ............................................................................................................................................... 6
Cost Benefit Analysis Methodology ................................................................................................. 7
Assumptions and Constraints ............................................................................................................... 7
Process ..................................................................................................................................................... 7
Evaluation Criteria ................................................................................................................................... 7
Cost Benefit Analysis Results .......................................................................................................... 8
Current State ........................................................................................................................................... 8
Future State ............................................................................................................................................. 8
Proposed Project ..................................................................................................................................... 8
Alternative Project 1................................................................................................................................ 8
Alternative Project 2................................................................................................................................ 8
Alternative Project 3................................................................................................................................ 8
Costs ................................................................................................................................................ 9
Proposed Project ..................................................................................................................................... 9
Project Development Costs ..................................................................................................................................... 9
Operational Costs ................................................................................................................................................... 9
Non-Recurring Costs ............................................................................................................................................... 9
Recurring Costs ...................................................................................................................................................... 9
Alternative Project 1................................................................................................................................ 9
Project Development Costs ..................................................................................................................................... 9
Operational Costs ................................................................................................................................................... 9
Non-Recurring Costs ............................................................................................................................................... 9
Recurring Costs ...................................................................................................................................................... 9
Alternative Project 2................................................................................................................................ 9
Project Development Costs ..................................................................................................................................... 9
Operational Costs ................................................................................................................................................... 9
Non-Recurring Costs ............................................................................................................................................... 9
Recurring Costs .................................................................................................................................................... 10
Alternative Project 3...............................................................................................................................10
Project Development Costs ................................................................................................................................... 10
Operational Costs ................................................................................................................................................. 10
Non-Recurring Costs ............................................................................................................................................. 10
Recurring Costs .................................................................................................................................................... 10
Benefits .......................................................................................................................................... 11
Proposed Project ....................................................................................................................................11
Non-Recurring Benefits ......................................................................................................................................... 11
Recurring Benefits ................................................................................................................................................. 11
Cost Reduction...................................................................................................................................................... 11
Enhanced Services ............................................................................................................................................... 11
Non-Financial Benefits .......................................................................................................................................... 11
Alternative Project 1...............................................................................................................................11
Non-Recurring Benefits ......................................................................................................................................... 11
Recurring Benefits ................................................................................................................................................. 11
Cost Reduction...................................................................................................................................................... 11
Enhanced Services ............................................................................................................................................... 11
Non-Financial Benefits .......................................................................................................................................... 11
Alternative Project 2...............................................................................................................................11
Non-Recurring Benefits ......................................................................................................................................... 11
Recurring Benefits ................................................................................................................................................. 11
Cost Reduction...................................................................................................................................................... 11
Enhanced Services ............................................................................................................................................... 12
Non-Financial Benefits .......................................................................................................................................... 12
Alternative Project 3...............................................................................................................................12
Non-Recurring Benefits ......................................................................................................................................... 12
Recurring Benefits ................................................................................................................................................. 12
Cost Reduction...................................................................................................................................................... 12
Enhanced Services ............................................................................................................................................... 12
Non-Financial Benefits .......................................................................................................................................... 12
© Global Knowledge Training LLC
Proposed Project and Alternatives Comparison ............................................................................ 13
Supporting Materials ...................................................................................................................... 14
Signatures ...................................................................................................................................... 15
© Global Knowledge Training LLC
Cost Benefit Analysis
Purpose
What is the purpose of the cost benefit analysis?
© Global Knowledge Training LLC
Cost Benefit Analysis
Scope
What is the scope of the cost benefit analysis?
© Global Knowledge Training LLC
Cost Benefit Analysis
Cost Benefit Analysis Methodology
Assumptions and Constraints
What assumptions were made and what constraints existed that impacted this cost benefit
analysis?
Process
How was the cost benefit analysis conducted? What information was gathered? Who assisted with
the identification of alternatives, analysis, and selection?
Evaluation Criteria
How were all of the possible projects evaluated? What criteria were used to identify the project
recommended within this document?
© Global Knowledge Training LLC
Cost Benefit Analysis
Cost Benefit Analysis Results
Current State
What is the current state that this project will change? Consider hardware, software, organizational
structure, processes, etc.
Future State
What are the goals for the future state?
Proposed Project
What project is being proposed? Why is it proposed over the alternatives?
Alternative Project 1
What project is an alternative?
Alternative Project 2
What project is an alternative?
Alternative Project 3
What project is an alternative?
© Global Knowledge Training LLC
Cost Benefit Analysis
Costs
Proposed Project
Project Development Costs
How much will this project cost? Consider hardware, software, consulting fees, internal labor
costs, etc.
Operational Costs
After this project is over, how much will it cost to maintain this solution?
Nonrecurring Costs
List any additional costs associated with project development or implementation that are
nonrecurring. These could include one-time charges, capital expenditures, etc.
Recurring Costs
List any additional costs associated with project development or implementation that are recurring.
These could include monthly facility charges, tax payments, salaries, etc.
Alternative Project 1
Project Development Costs
How much will this project cost? Consider hardware, software, consulting fees, internal labor
costs, etc.
Operational Costs
After this project is over, how much will it cost to maintain this solution?
Nonrecurring Costs
List any additional costs associated with project development or implementation that are
nonrecurring. These could include one-time charges, capital expenditures, etc.
Recurring Costs
List any additional costs associated with project development or implementation that are recurring.
These could include monthly facility charges, tax payments, salaries, etc.
Alternative Project 2
Project Development Costs
How much will this project cost? Consider hardware, software, consulting fees, internal labor
costs, etc.
Operational Costs
After this project is over, how much will it cost to maintain this solution?
Nonrecurring Costs
List any additional costs associated with project development or implementation that are
nonrecurring. These could include one-time charges, capital expenditures, etc.
© Global Knowledge Training LLC
Cost Benefit Analysis
Recurring Costs
List any additional costs associated with project development or implementation that are recurring.
These could include monthly facility charges, tax payments, salaries, etc.
Alternative Project 3
Project Development Costs
How much will this project cost? Consider hardware, software, consulting fees, internal labor
costs, etc.
Operational Costs
After this project is over, how much will it cost to maintain this solution?
Nonrecurring Costs
List any additional costs associated with project development or implementation that are
nonrecurring. These could include one-time charges, capital expenditures, etc.
Recurring Costs
List any additional costs associated with project development or implementation that are recurring.
These could include monthly facility charges, tax payments, salaries, etc.
© Global Knowledge Training LLC
Cost Benefit Analysis
Benefits
Proposed Project
Nonrecurring Benefits
List any benefits associated with project development or implementation that are nonrecurring.
Recurring Benefits
List any benefits associated with project development or implementation that are recurring.
Cost Reduction
Explain how this project reduces development or maintenance costs.
Enhanced Services
How does this project improve systems? Make the organization more effective and/or efficient?
Nonfinancial Benefits
Does this project result in any nonfinancial benefits? Improved customer satisfaction?
Alternative Project 1
Nonrecurring Benefits
List any benefits associated with project development or implementation that are nonrecurring.
Recurring Benefits
List any benefits associated with project development or implementation that are recurring.
Cost Reduction
Explain how this project reduces development or maintenance costs.
Enhanced Services
How does this project improve systems? Make the organization more effective and/or efficient?
Nonfinancial Benefits
Does this project result in any nonfinancial benefits? Improved customer satisfaction?
Alternative Project 2
Nonrecurring Benefits
List any benefits associated with project development or implementation that are nonrecurring.
Recurring Benefits
List any benefits associated with project development or implementation that are recurring.
Cost Reduction
Explain how this project reduces development or maintenance costs.
© Global Knowledge Training LLC
Cost Benefit Analysis
Enhanced Services
How does this project improve systems? Make the organization more effective and/or efficient?
Nonfinancial Benefits
Does this project result in any nonfinancial benefits? Improved customer satisfaction?
Alternative Project 3
Nonrecurring Benefits
List any benefits associated with project development or implementation that are nonrecurring.
Recurring Benefits
List any benefits associated with project development or implementation that are recurring.
Cost Reduction
Explain how this project reduces development or maintenance costs.
Enhanced Services
How does this project improve systems? Make the organization more effective and/or efficient?
Nonfinancial Benefits
Does this project result in any nonfinancial benefits? Improved customer satisfaction?
© Global Knowledge Training LLC
Cost Benefit Analysis
Proposed Project and Alternatives Comparison
Complete the following information to compare the possibilities.
Costs
Development
Operational
Nonrecurring
Recurring
Cost Savings
Recurring
Total
Enhance Svcs
Total
Project
Alternative 1
Alternative 2
Alternative 3
Benefits
Nonrecurring
Project
Alternative 1
Alternative 2
Alternative 3
Cost/Benefit Analysis
Net Present Value
Payback Period
Cost/Benefit Ratio
Project
Alternative 1
Alternative 2
Alternative 3
© Global Knowledge Training LLC
Cost Benefit Analysis
Supporting Materials
What documentation was used from prior projects or current processes to help define this cost
benefit analysis?
© Global Knowledge Training LLC
Cost Benefit Analysis
Signatures
Accepted
Rejected
Accepted with these changes:
Signature of sponsor
Printed name of sponsor
Date
Signature of project manager
Printed name of project manager
Date
© Global Knowledge Training LLC