MODULE 2.4: Cost benefit Analysis

Summary and objectives

 Business today it’s critical to maximize the outcome of every idea, option, and investment. Given that resources are scarce a proper evaluation of alternatives is important. To accomplish this, many organizations - from large enterprises to startups and small businesses - use cost benefit analyses to help make important decisions. Using a cost benefit analysis can help entrepreneurs and managers to identify the highest and best return on an investment based on the cost, resources, and risk involved.

Expected learning outcomes

  • Understand what a CBA does
  • Perform a CBA in a meaningful way
  • Identify the elements of CBA
  • Acknowledge elements that jeopardize the validity of CBA
  • Use CBA as a decision-making tool

Keywords

CBA, Net present Value, Sensitivity Analysis, monetary Value

Content Organisation

MODULES
COMMUNICATION
(MODULE 1)
BUSINESS & FINANCE
(MODULE 2)
TECHNICAL SKILLS
(MODULE 3)
FORMATION
Step 1: IDEATING
1.1
Entrepreneurial
Skills
2.1
Business
Ideation
3.1
Desktop
research
Skills
Step 2: CONCEPTING
1.2
Active Listening
& Presentation
Skills
2.2
Financial
Literacy
& BMC
3.2
Identify
interesting
content
VALIDATION
Step 3: COMMITTING
1.3
Team Building
& Conflict
resolution
2.3
Basic
Accounting
3.3
Project
management
Step 4: VALIDATING
1.4
Critical Thinking
& Decision
Making
2.4
Cost benefit
Analysis
3.4
Reaching out
GROWTH
Step 5: SCALING
1.5
Strategic Planning
& Management
Skills
2.5
Investment
Basics
3.5
Metrics
Step 6: ESTABLISHING
1.6
Networking &
Business
Etiquette
2.6
Forecasting
& Investing
3.6
Advertising