Main steps to do a Benefit- Cost AnalysisStep One: Brainstorm Costs and Benefits First, take time to brainstorm the costs associated to the project, and make a list of these. Then, do the same for all of the benefits of the project. Can you think of any unexpected costs? And are there benefits that you may not initially have anticipated? When you come up with the costs and benefits, think about the lifetime of the project. What are the costs and benefits likely to be over time? Step Two: Assign a Monetary Value to the Costs Costs include: the costs of physical resources (raw material) as well as the cost of the human effort involved in all phases of a project. Costs are often relatively easy to estimate (compared with revenues). It is important that you think about as many related costs as you can. For example: what will any training cost? Will there be a decrease in productivity while people are learning a new system or technology, and how much will this cost?