Cost-Benefit Analysis Checklist ( FINANCE )

This checklist is designed to guide the team through the process of performing a Cost-Benefit Analysis, helping to ensure that all necessary factors are considered before making financial decisions related to projects or investments.

• Define the Project or Investment

  Clearly outline the scope, objectives, and expected outcomes of the project or investment being analyzed.

• Identify Costs

  List all costs associated with the project/investment, including direct, indirect, fixed, and variable costs.

• Identify Benefits

  Enumerate the expected benefits, both quantifiable (e.g., increased revenue) and qualitative (e.g., improved customer satisfaction).

• Quantify Costs and Benefits

  Assign monetary values to both costs and benefits, ensuring to account for timeframes and potential changes over time.

• Determine the Net Present Value (NPV)

  Calculate the NPV of the costs and benefits to understand the true value of the project/investment over time.

• Perform Sensitivity Analysis

  Assess how changes in key assumptions (costs, benefits, discount rates) affect the outcomes.

• Make Recommendations

  Based on the analysis, recommend whether the project/investment should proceed, be modified, or be abandoned.

• Document Findings

  Compile all findings, calculations, and recommendations into a formal report for review by stakeholders.