Cost-Benefit Analysis

Title Cost benefit analysis checklist

Cost-Benefit Analysis Checklist for Project Managers (Free Download)

Compiling a cost-benefit analysis for different project or investment alternatives can be a burdensome exercise. Collecting data from numerous sources, coming up with assumptions, calculating different approaches, and interpreting the results can be confusing even for experienced project managers. This checklist will help you to conduct a cost-benefit analysis in a structured and well-organized way. …

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Title and Screenshot of Calculator for Discounted Payback Period

Discounted Payback Period: Definition, Formula, Example & Calculator

The discounted payback period (DPP) is a success measure of investments and projects. Although it is not explicitly mentioned in the Project Management Body of Knowledge (PMBOK) it has practical relevance in many projects as an enhanced version of the payback period (PBP). Read through for the definition and formula of the DPP, 2 examples …

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Internal Rate of Return (IRR) Calculator

IRR Calculator: Internal Rate of Return (IRR) of Projects

The Internal Rate of Return is one of the most common success measures of projects and investments. It is a profitability metric that can be used to assess and compare different project options even if their investment amounts, timeline and cash flow characteristics differ. In project management, it is often used for cost-benefit analyses as …

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Internal Rate of Return (IRR) vs. ROI – What Are the Differences?

If you are working on a cost-benefit analysis, you will almost inevitably come across ROI and IRR. Return on Investment (ROI) and Internal Rate of Return (IRR) are among the most popular success measures for projects and investments. They are also mentioned in the Project Management Institute’s Body of Knowledge (source: PMBOK, 6th edition, part …

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ROI Title

Return on Investment (Single & Multi-Period ROI): Formulae, Examples, Calculator

Return on Investment is one of the most common indicators used for the cost-benefit analysis. This is probably because of its simplicity and understandability of the information conveyed. In Project Management, it is a success measure suggested by the Project Management Institute (PMI; source: PMBOK, 6th edition, part 1, ch. 1.2.6.4, p. 34). However, the …

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A Project Team performs a cost benefit analysis

Cost-Benefit Analysis for Business Cases (Definition, Steps, Example)

When you prepare a project in line with PMI or other established project management methodologies, you will have to create a project business case. This business case is usually a study on the expected qualitative and financial benefits of a single project or different project options. An essential part of this process is the cost-benefit …

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Payback Period Calculator – PbP for Even & Uneven Cash Flows

Do you need to calculate the number of periods an investment requires to reach the break-even point? The Payback Period (PbP or PBP) indicates the period in which a full repayment or amortization of an investment is achieved. This indicator is used not only for the assessment of project options and business cases in project …

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What Is the Benefit Cost Ratio (BCR)? Definition, Formula, Example.

The Benefit Cost Ratio (BCR), also referred to as Benefit-to-Cost Ratio is an indicator that is typically used within a cost benefit analysis. In project management, the benefit cost ratio can support the cost-benefit analysis of a business case. The PMI Project Management Body of Knowledge lists the BCR under project success measures, next to …

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Net Present Value Title Pic

What Is the Net Present Value (NPV) & How Is It Calculated?

When you perform a cost-benefit analysis and need to compare different investment alternatives with each other, you might consider using the net present value (NPV) as one of the profitability indicators. In project management, the NPV is commonly used and also listed in PMI’s Project Management Body of Knowledge (source: PMBOK, 6th edition, part 1, …

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