Cost_Benefit_Analysis_Guidance - Main steps to do a Cost-Benefit Analysis Step One Brainstorm Costs and Benefits First take time to brainstorm the

Cost_Benefit_Analysis_Guidance - Main steps to do a...

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Main steps to do a Cost-Benefit Analysis Step 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. o Can you think of any unexpected costs? o 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. o 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?

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