How do I conduct a cost-benefit analysis?

How do I conduct a cost-benefit analysis?

To conduct a cost-benefit analysis, start by identifying the costs and benefits of the project or decision.

What types of costs should I consider?

Consider both direct costs, like expenses, and indirect costs, such as opportunity costs and potential risks.

How do I quantify the benefits?

Quantify benefits by estimating the monetary value of the outcomes, such as increased revenue or improved efficiency.

Can you give me an example of a cost-benefit analysis?

Sure! For a new software implementation, costs might include purchase price and training, while benefits could be time saved and increased productivity.