Cost-Benefit Analysis Checklist ( FINANCE )

This checklist is designed to guide the user through the process of conducting a cost-benefit analysis for a proposed project or investment. It ensures that all necessary factors are considered, and helps in making informed financial decisions.

• Define the Project Scope

  Clearly outline the objectives, goals, and parameters of the project to ensure a focused analysis.

• Identify Costs

  List all potential costs associated with the project, including direct, indirect, fixed, variable, and opportunity costs.

• Estimate Benefits

  Determine the expected benefits of the project, including tangible and intangible benefits, and assign monetary values where possible.

• Conduct Break-even Analysis

  Analyze the point at which total revenues equal total costs to evaluate the project's viability.

• Calculate Net Present Value (NPV)

  Discount future benefits and costs to their present values and calculate the NPV to assess the project's profitability.

• Perform Sensitivity Analysis

  Test how sensitive the outcomes are to changes in key assumptions (costs, benefits, discount rates) to understand risks.

• Compile Findings

  Summarize the results of the analysis, including a comparison of total costs versus total benefits.

• Prepare a Recommendation Report

  Generate a report outlining the analysis process, findings, and recommendations for stakeholders.