Cost Benefit Analysis Template Excel

The cost benefit analysis is a financial analysis performed to understand the financial stability of a business. It is a vital tool for a business feasibility kit and commonly known as CBA.

Conducting the feasibility analysis for decision making is important in businesses. Even investors and project managers look into the feasibility of the project before investing resources. Businesses are focused to earn gradually increasing profit. Thus, the expansion and continuous improvement are a part of all the businesses.

Cost Benefit Analysis Chart Ppt

In the cost benefit analysis, the estimated costs and projected tangible benefits of a project or business are assessed. The resultant value helps to make a decision. So, the project managers evaluate the profitability and viability of a plan after looking at the results of the CBA chart.

CBA-CHART
CBA-CHART

Moreover, mostly startup plans or projects require funding from investors. Investors always look at the financial compatibility of the project. Thus, the business model feasibility includes risk profit analysis, cost benefit analysis, return on investment analysis, and payback period analysis.

So, if a project has more benefits than the estimate cost plan. The project is considered financially stable and investors love to invest in such a project keeping in view the ROI and Payback Period.

If you are working on the startup plan of your business and want to attract more investors, it is recommended to must include cost benefit analysis in the study. However, your main focus should be on clearly presenting the projections of your project instead of making a format for analysis.

Thus, the professionals have created several strategies to quickly conduct a cost benefit analysis for the business. There are several cost benefit analysis templates that are available on the internet for assistance and here at excel-template.com.

A cost benefit analysis template excel provides guidelines to perform analysis for a specific project. As these are just estimation techniques and all the input data came from market surveys and feedback. Thus, the variation in the actual results of the costs and benefits of a project can be faced during execution.

Cost Benefit Analysis Objective and Utilization

Although, the cost benefit analysis manipulates the projected figures to present the estimated results on the financial stability of a project. However, it’s used in different ways with different intentions.

The cost benefit analysis template can be useful to just get a hint of project viability. So, detailed work can be started on the option. However, it helps to use rigid input data to present the accurate project in some cases where costs and benefits real-time or historic data is available.

So, it helps in multiple ways for decision making in projects, business plans, capacity enhancement, and non-profit organizations. It stands out as the most suitable strategy for different processes during the project lifecycle.

The following are the established utilities of CBA in businesses and projects field:

  1. It helps to analyze the estimated costs and projected benefits of many plans for decision making.
  2. It benchmarks the baseline of benefits and costs between alternatives.
  3. The investment opportunities and social benefits are evaluated by using
  4. The CBA can be helpful to assess the effect of stakeholders, strategies, initiatives, and policies on the project.

Download Free Cost Benefit Analysis Template—————————————————————————————

Template 1:

sample-cost-benefit-analysis
sample-cost-benefit-analysis

Filename: “sample-cost-benefit-analysis
File Size: 36 Kb
File Format: Ms Excel(xlsx)
Template Type: Basic (Free)
Download File: Comment Below to get free template *Mention Valid Email
Author Name: John Mathew


Template 2:

CBA-Template
CBA-Template

Filename: “CBA-Template
File Size: 41 Kb
File Format: Ms Excel(xlsx)
Template Type: Basic (Free)
Download File: Comment Below to get free template *Mention Valid Email
Author Name: John Mathew


Template 3:

CBA
CBA

Filename: “CBA
File Size: 56 Kb
File Format: Ms Excel(xlsx)
Template Type: Basic (Free)
Download File: Comment Below to get free template *Mention Valid Email
Author Name: John Mathew


Template 4:

Cost-and-Benefit-Analysis-T
Cost-and-Benefit-Analysis-Template

Filename: “Cost-and-Benefit-Analysis-Template
File Size: 86 Kb
File Format: Ms Excel(xlsx)
Template Type: Basic (Free)
Download File: Comment Below to get free template *Mention Valid Email
Author Name: John Mathew


How to Perform Cost Benefit Analysis

The cost benefit analysis is not very difficult to perform using guidelines available on cost benefit analysis template excel. The project management gurus have established these guidelines. So, these guidelines are equally helpful to conduct a cost benefit analysis for any type of business plan or project.

The simple steps to perform a cost benefit analysis for alternatives include:

  • Define the problem statement, scope, objective, and goals of the project or business to clarify what exactly is focused to achieve.
  • Identify alternative strategies to achieve the required objectives and goals.
  • Shortlist the practically and technically viable alternative for comparison.
  • Identify the key stakeholders for all the alternatives.
  • Define the Metrics and KPI for the comparison of alternatives costs and benefits.
  • Identify, estimate, or project the costs and benefits of a project for a certain time.
  • Use a standard currency and assumptions for comparison of costs and benefits of all the alternatives.
  • The future value of project outcome isn’t comparable. Do conversion to calculate net present value. The net present value is the difference between the present values of cash outflows and cash inflows.
  • Must verify your calculations using sensitivity analysis. It represents the rigidity of calculations.

After evaluation of the project alternatives to deal with certain problems, the costs, and benefits of the alternatives are available to make decisions. It is not recommended to rush for the decision making just based on CBA. Especially, when the estimated costs are in millions.

Don’t take unnecessary risks as high costs projects and startups require extensive planning before starting actual work. So, perform other financial analysis from the feasibility kit to make your decision viable and profitable.

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