What are the best practices for conducting a cost-benefit analysis?

What are the best practices for conducting a cost-benefit analysis?

The best practices include clearly defining the scope, identifying all costs and benefits, and using a consistent time frame.

How do I identify and quantify costs effectively?

You can categorize costs into fixed and variable, and use historical data or expert estimates to quantify them.

What methods can I use to evaluate the benefits?

Common methods include direct measurement, surveys, and using proxies for intangible benefits.

How do I handle uncertainty in my analysis?

You can use sensitivity analysis or scenario analysis to assess how changes in assumptions affect outcomes.

Can you recommend any tools for cost-benefit analysis?

Sure! Tools like Excel, CBA software, and specialized financial modeling tools can be very helpful.