Cost Benefit Analysis

Option 1
As we discovered this week from our readings and video’s, not all cost-benefit decisions can be made from
strictly financial data. Thinking about a project you have worked on or proposed, or a project which you feel
is critical in your company or community, give an example of a non-financial metric which should be
considered and why you think that non-financial metric should result in the approval of the project.
– OR –
Option 2
Your New Product Development initiative is at the stage where a Cost-Benefit Analysis is needed to prepare
for the final presentation to management. There are multiples metrics you could use to quantify the benefit of
your proposal (incremental sales, nominal payback, discounted payback, NPV and IRR). Choose the one that
you feel is most crucial and would best help Management see the value in your proposal. Explain what the
metric shows and then discuss how you would go about gathering the data and calculating this for your new
initiative (and, if you have already done this in real life, share what you did and what response you got from
Management).