Cost Benefit Analysis Tool

Cost Benefit Analysis Tool

Feasibility studies are a great way to assess the organizational impact of different project options. Use this tool to perform a cost/benefit analysis and to calculate the project’s ROI.

Typically, enterprises considering IT projects that carry significant business risk undertake a feasibility study as part of their evaluation process for assessing project viability.

Performing a feasibility study is not a requirement for every business-critical project. It is, however, a valuable tool for projects exceeding $100,000 or 15 percent of IT capital budgets. A carefully crafted feasibility study also helps IT leaders assess alternative solutions or approaches that may exist.

An essential part of all feasibility studies is a cost/benefit analysis of the project. This cost/benefit analysis tool provides users with the ability to:

• Assess the organizational impact of different project options.
• Calculate the Net Present Value (NPV), Internal Rate of Return (IRR), Return on Investment (ROI) and Payback Period of each project option.
• Generate comparative graphs that show ROI, cumulative ROI over a five-year period, NPV and IRR for each option under consideration.

This tool is a valuable asset for staff or enterprises that are performing feasibility studies or need a tool to calculate the NPV, IRR, Payback Period and ROI.

The attached Zip file includes:

• Intro Page.doc
• Cover Sheet and Terms.pdf
• Cost Benefit Analysis Tool.xls