成本回报分析Benefit+Cost+Analysis.ppt

BENEFIT COST ANALYSIS
JAMES ANTLE
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BENEFIT COST ANALYSIS
PURPOSE:
Offers a straightforward method of economic analysis for proposed Information Technology Projects.
AUDIENCE:
Material designed to help individuals/plete Benefit Cost Analysis (BCA) Project Analysis Worksheet.
BCA PROCESS
SECTION I: Capture Costs and Benefits
Current Technology Vs Proposed Technology
SECTION II: Benefit/Cost Analysis (BCA)
Economic analysis of a proposed IT project
BCA OVERVIEW
Current Technology Vs Proposed Technology
Captures costs of the current method of providing goods and/or services
Captures costs of the proposed method of providing goods and/or services
Difference of proposed to current (if positive) is benefit of the proposed method
BCA OVERVIEW (Cont.)
Section II: Benefit / Cost Analysis (BCA)
Outlines methods to analyze the economic feasibility of a project
Used by EI teams in the Cause Finding and/or Solution Finding Steps of the Six Step Problem Solving Process
TIME VALUE OF MONEY
Because all Benefit/Cost Analysis is based on the time value of money, this section will explain in simplified terms that concept.
We must start with the following simplifying assumptions:
What if 5% rate of interest is fixed rate of return at every financial institution
Assume no inflation
What if you have $100 to invest
TIME VALUE OF MONEY (Cont.)
At the 5% rate of interest:
$100 + [Giving up use for one year] =
$100 + $5
[Giving up the use for one year] = $5
Time Value of Money = $5
Stated another way, $100 today is equal to $105 one year from today at a 5% interest rate or equally the present value of $105 (which you would receive 1 year from today) is $100 assuming again the same 5% interest rate.
TIME VALUE OF MONEY:PRESENT VALUE EXAMPLE
YEARS 0 1 2 3 4 5
$1000 $1000 $1000 $1000 $1000
Present value (PV)
of receipts
$952
$907
$864
$823
$784
$4330 = Receiving a stream on $1000 a year for the next 5 y