Identification and Categorization of all possible Costs and Benefits
Identification and Categorization of all possible Costs and Benefits associated with your project; separate the benefits and costs you included in your CBA and explain why;
Identification and Categorization of all possible Costs and Benefits
The final report of your CBA project should have Seven
components:
(i) An Introduction (which will include the objectives of your research as well as its importance);
(ii) Standing (Whose benefits and costs to include and why?);
(iii) Identification and Categorization of all possible Costs and Benefits associated with your project; separate the benefits and costs you included in your CBA and explain why ;
(iv) Valuation of Benefits and Costs (How did you attach dollar values to the benefits and costs you’ve decided to include in your CBA?
Where do they come from? Are those reliable?);
(v) More so, Discounting: (Which discount rate did you use for your project and why? How did you calculate it?);
(vi) How did you calculate the NPV of the project?
Did you conduct a sensitivity Analysis of your results? What are
the implications of your results?), and
(vii) Summarize the key results of your research and conclude the report.
More Details:
In addition, Developing an IT application is an investment. Since after developing that application it provides the organization with profits.
Also, profits can be monetary or in the form of an improved working environment.
However, it carries risks, because in some cases an estimate can be wrong. And the project might not actually turn out to be beneficial.
Cost benefit analysis helps to give management a picture of the costs, benefits and risks. It usually involves comparing alternate investments.
Also, cost benefit determines the benefits and savings that are expected from the system and compares them with the expected costs.
Lastly, the cost of an information system involves the development cost and maintenance cost.