Cost Benefit Analysis: VITA PMD Example Project

Period of Analysis = __8__ years

Project Cost
Total O&M Cost
TCO: Project + O&M
Cumulative benefits
Cumulative NET benefits
ROI: (bene-cost)/cost
Breakeven:
Do Nothing Alt 1: In house Alt 2: Separate Alt 3: "Free" Total Cost of Ownership (TCO)
RFP software
$ - $ 1,060,000 $ 800,000 $ 520,000 $8,000,000
$ 7,200,000 $ 3,630,000 $ 5,100,000 $ 5,100,000
$ 7,200,000 $ 4,690,000 $ 5,900,000 $ 5,620,000
$ - $ 4,570,000 $ 3,100,000 $ 3,100,000
$ - $ 3,510,000 $ 2,300,000 $ 2,580,000 $7,000,000
0% 331% 288% 496%
n/a Year 2 Year 2 Year 1
$6,000,000

Net Benefits and Return on Investment (ROI)

$4,000,000 600% $5,000,000

$3,500,000
500%
$4,000,000
$3,000,000

400%
$2,500,000 $3,000,000

$2,000,000 300%
$2,000,000
$1,500,000
200%

$1,000,000 $1,000,000

100%
$500,000
$-
Do Nothing Alt 1: In house Alt 2: Separate RFP Alt 3: "Free" software
$- 0%
Do Nothing Alt 1: In house Alt 2: Separate RFP Alt 3: "Free" software
Project Cost Total O&M Cost
Cumulative NET benefits ROI: (bene-cost)/cost
 FY FY FY FY FY FY FY FY FY FY
Do Nothing 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
TOTAL
Internal Staff Labor $ -
Services $ -
Software Tools $ -
Hardware $ -
Maintenance $ -
Facilities $ -
Telecommunications $ -
Project Costs:
Training $ -
IV&V $ -
Contingency (Risk) $ -
Pre-Project Init. Costs $ -
Other $ -
Annual Project Cost $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Proj. Cost: Cumulative $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Implementation Year: Today's O&M Today's O&M 1 2 3 4 5 6
FTE IT staff # 0 0 0 0 0 0 0 0
FTE IT staff $ -
FTE operations staff # 0 0 0 0 0 0 0 0
FTE operations staff $ -
Ops Contractors # 0 0 0 0 0 0 0 0
Ops Contractors $ -
Total Staff # 0 0 0 0 0 0 0 0 0 0
SubTotal: Staff Costs $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
IT Vendor Svcs. $ 900,000 $ 900,000 $ 900,000 $ 900,000 $ 900,000 $ 900,000 $ 900,000 $ 900,000 $ 7,200,000
O&M Costs: SW & Licenses $ -
HW $ -
Maintenance $ -
Facilities $ -
Telecomm $ -
Training $ -
Op Contingncy $ -
Misc Ops $ -
Annual O & M Cost $ 900,000 $ 900,000 $ 900,000 $ 900,000 $ 900,000 $ 900,000 $ 900,000 $ 900,000 $ - $ -
O&M Costs: Cumulative $ 900,000 $ 1,800,000 $ 2,700,000 $ 3,600,000 $ 4,500,000 $ 5,400,000 $ 6,300,000 $ 7,200,000 $ 7,200,000 $ 7,200,000 $ 7,200,000

Total Cost of TCO: Proj. + O&M Costs:

Ownership (TCO) Cumulative $ 900,000 $ 1,800,000 $ 2,700,000 $ 3,600,000 $ 4,500,000 $ 5,400,000 $ 6,300,000 $ 7,200,000 $ 7,200,000 $ 7,200,000 $ 7,200,000

Cost Savings, Cost Avoidance, Increased Revenue & Other financial Benefits to the Organization:
1 2 3 4 5 6
Benefit 1. (Note 1.) $ -
Benefit 2. (Note 2.) $ -
Benefit 3. (Note 3.) $ -
Benefit 4. (Note 4.) $ -
Benefit 5. (Note 5.) $ -
SubTotal:Annual Benefits $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Benefits
Cumulative Benefits $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Note 1. Cost Savings: O&M savings compared to "Do Nothing" alternative ("Do Nothing" row 35 - row 35)
Note 2. Cost Avoidance: If we select this alternative, we will NOT have to purchase _______ in the "Do Nothing" scenario.
Note 3. Increased Revenues: If we select this alternative, our organization will collect additional revenues.
Note 4. Other cost savings, cost avoidance or increased revenues.
Note 5. Other cost savings, cost avoidance or increased revenues.

Cumulative ROI ROI=(ben-cost)/cost 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Note: The Breakeven year is where the ROI changes from a negative % to a positive %.

Notes:
 FY FY FY FY FY FY FY FY FY FY
Alternative 1 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
TOTAL
Internal Staff Labor $ 250,000 $ 250,000 $ 500,000
Services $ -
Software Tools $ 150,000 $ 150,000 $ 300,000
Hardware $ 75,000 $ 75,000 $ 150,000
Maintenance $ -
Facilities $ -
Telecommunications $ -
Project Costs:
Training $ -
IV&V $ 15,000 $ 15,000 $ 30,000
Contingency (Risk) $ 40,000 $ 40,000 $ 80,000
Pre-Project Init. Costs $ -
Other $ -
Annual Project Cost $ - $ 530,000 $ 530,000 $ - $ - $ - $ - $ - $ - $ -
Proj. Cost: Cumulative $ - $ 530,000 $ 1,060,000 $ 1,060,000 $ 1,060,000 $ 1,060,000 $ 1,060,000 $ 1,060,000 $ 1,060,000 $ 1,060,000 $ 1,060,000
Implementation Year: Today's O&M Today's O&M 1 2 3 4 5 6
FTE IT staff # 0 0 1 1 1 1 1 1
FTE IT staff $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 600,000
FTE operations staff # 0 0 1 1 1 1 1 1
FTE operations staff $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 600,000
Ops Contractors # 0 0 0 0 0 0 0 0
Ops Contractors $ -
Total Staff # 0 0 2 2 2 2 2 2 0 0
SubTotal: Staff Costs $ - $ - $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ - $ - $ 1,200,000
IT Vendor Svcs. $ 900,000 $ 900,000 $ 1,800,000
O&M Costs: SW & Licenses $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 240,000
HW $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 150,000
Maintenance $ -
Facilities $ -
Telecomm $ -
Training $ -
Op Contingncy $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 240,000
Misc Ops $ -
Annual O & M Cost $ 900,000 $ 900,000 $ 305,000 $ 305,000 $ 305,000 $ 305,000 $ 305,000 $ 305,000 $ - $ -
O&M Costs: Cumulative $ 900,000 $ 1,800,000 $ 2,105,000 $ 2,410,000 $ 2,715,000 $ 3,020,000 $ 3,325,000 $ 3,630,000 $ 3,630,000 $ 3,630,000 $ 3,630,000

Total Cost of TCO: Proj. + O&M Costs:

Ownership (TCO) Cumulative $ 900,000 $ 2,330,000 $ 3,165,000 $ 3,470,000 $ 3,775,000 $ 4,080,000 $ 4,385,000 $ 4,690,000 $ 4,690,000 $ 4,690,000 $ 4,690,000

Cost Savings, Cost Avoidance, Increased Revenue & Other financial Benefits to the Organization:
1 2 3 4 5 6
Benefit 1. (Note 1.) $ - $ - $ 595,000 $ 595,000 $ 595,000 $ 595,000 $ 595,000 $ 595,000 $ - $ - $ 3,570,000
Benefit 2. (Note 2.) $ - $ 100,000 $ - $ 100,000 $ - $ 100,000 $ - $ 100,000 $ 400,000
Benefit 3. (Note 3.) $ - $ - $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 600,000
Benefit 4. (Note 4.) $ - $ - $ - $ - $ - $ - $ - $ - $ -
Benefit 5. (Note 5.) $ - $ - $ - $ - $ - $ - $ - $ - $ -
SubTotal:Annual Benefits $ - $ 100,000 $ 695,000 $ 795,000 $ 695,000 $ 795,000 $ 695,000 $ 795,000 $ - $ -
Benefits
Cumulative Benefits $ - $ 100,000 $ 795,000 $ 1,590,000 $ 2,285,000 $ 3,080,000 $ 3,775,000 $ 4,570,000 $ 4,570,000 $ 4,570,000 $ 4,570,000
Note 1. Cost Savings: O&M savings compared to "Do Nothing" alternative ("Do Nothing" row 35 - row 35)
Note 2. Cost Avoidance: If we select this alternative, we will NOT have to purchase _______ in the "Do Nothing" scenario.
Note 3. Increased Revenues: If we select this alternative, our organization will collect additional revenues.
Note 4. Other cost savings, cost avoidance or increased revenues.
Note 5. Other cost savings, cost avoidance or increased revenues.

Cumulative ROI ROI=(ben-cost)/cost -100% -91% -25% 50% 116% 191% 256% 331% 331% 331% 331%
Note: The Breakeven year is where the ROI changes from a negative % to a positive %.

Notes:
 FY FY FY FY FY FY FY FY FY FY
Alternative 2 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
TOTAL
Internal Staff Labor $ 30,000 $ 30,000 $ 60,000
Services $ 200,000 $ 200,000 $ 400,000
Software Tools $ 125,000 $ 125,000 $ 250,000
Hardware $ -
Maintenance $ -
Facilities $ -
Telecommunications $ -
Project Costs:
Training $ -
IV&V $ 15,000 $ 15,000 $ 30,000
Contingency (Risk) $ 30,000 $ 30,000 $ 60,000
Pre-Project Init. Costs $ -
Other $ -
Annual Project Cost $ - $ 400,000 $ 400,000 $ - $ - $ - $ - $ - $ - $ -
Proj. Cost: Cumulative $ - $ 400,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000
Implementation Year: Today's O&M Today's O&M 1 2 3 4 5 6
FTE IT staff # 0 0 0 0 0 0 0 0
FTE IT staff $ -
FTE operations staff # 0 0 0 0 0 0 0 0
FTE operations staff $ -
Ops Contractors # 0 0 0 0 0 0 0 0
Ops Contractors $ -
Total Staff # 0 0 0 0 0 0 0 0 0 0
SubTotal: Staff Costs $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
IT Vendor Svcs. $ 900,000 $ 900,000 $ 300,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 5,100,000
O&M Costs: SW & Licenses $ -
HW $ -
Maintenance $ -
Facilities $ -
Telecomm $ -
Training $ -
Op Contingncy $ -
Misc Ops $ -
Annual O & M Cost $ 900,000 $ 900,000 $ 300,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ - $ -
O&M Costs: Cumulative $ 900,000 $ 1,800,000 $ 2,100,000 $ 2,700,000 $ 3,300,000 $ 3,900,000 $ 4,500,000 $ 5,100,000 $ 5,100,000 $ 5,100,000 $ 5,100,000

Total Cost of TCO: Proj. + O&M Costs:

Ownership (TCO) Cumulative $ 900,000 $ 2,200,000 $ 2,900,000 $ 3,500,000 $ 4,100,000 $ 4,700,000 $ 5,300,000 $ 5,900,000 $ 5,900,000 $ 5,900,000 $ 5,900,000

Cost Savings, Cost Avoidance, Increased Revenue & Other financial Benefits to the Organization:
1 2 3 4 5 6
Benefit 1. (Note 1.) $ - $ - $ 600,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ - $ - $ 2,100,000
Benefit 2. (Note 2.) $ - $ 100,000 $ - $ 100,000 $ - $ 100,000 $ - $ 100,000 $ 400,000
Benefit 3. (Note 3.) $ - $ - $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 600,000
Benefit 4. (Note 4.) $ - $ - $ - $ - $ - $ - $ - $ - $ -
Benefit 5. (Note 5.) $ - $ - $ - $ - $ - $ - $ - $ - $ -
SubTotal:Annual Benefits $ - $ 100,000 $ 700,000 $ 500,000 $ 400,000 $ 500,000 $ 400,000 $ 500,000 $ - $ -
Benefits
Cumulative Benefits $ - $ 100,000 $ 800,000 $ 1,300,000 $ 1,700,000 $ 2,200,000 $ 2,600,000 $ 3,100,000 $ 3,100,000 $ 3,100,000 $ 3,100,000
Note 1. Cost Savings: O&M savings compared to "Do Nothing" alternative ("Do Nothing" row 35 - row 35)
Note 2. Cost Avoidance: If we select this alternative, we will NOT have to purchase _______ in the "Do Nothing" scenario.
Note 3. Increased Revenues: If we select this alternative, our organization will collect additional revenues.
Note 4. Other cost savings, cost avoidance or increased revenues.
Note 5. Other cost savings, cost avoidance or increased revenues.

Cumulative ROI ROI=(ben-cost)/cost -100% -88% 0% 63% 113% 175% 225% 288% 288% 288% 288%
Note: The Breakeven year is where the ROI changes from a negative % to a positive %.

Notes:
 FY FY FY FY FY FY FY FY FY FY
Alternative 3 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
TOTAL
Internal Staff Labor $ 30,000 $ 30,000 $ 60,000
Services $ 200,000 $ 200,000 $ 400,000
Software Tools $ -
Hardware $ -
Maintenance $ -
Facilities $ -
Telecommunications $ -
Project Costs:
Training $ -
IV&V $ 15,000 $ 15,000 $ 30,000
Contingency (Risk) $ 15,000 $ 15,000 $ 30,000
Pre-Project Init. Costs $ -
Other $ -
Annual Project Cost $ - $ 260,000 $ 260,000 $ - $ - $ - $ - $ - $ - $ -
Proj. Cost: Cumulative $ - $ 260,000 $ 520,000 $ 520,000 $ 520,000 $ 520,000 $ 520,000 $ 520,000 $ 520,000 $ 520,000 $ 520,000
Implementation Year: Today's O&M Today's O&M 1 2 3 4 5 6
FTE IT staff # 0 0 0 0 0 0 0 0
FTE IT staff $ -
FTE operations staff # 0 0 0 0 0 0 0 0
FTE operations staff $ -
Ops Contractors # 0 0 0 0 0 0 0 0
Ops Contractors $ -
Total Staff # 0 0 0 0 0 0 0 0 0 0
SubTotal: Staff Costs $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
IT Vendor Svcs. $ 900,000 $ 900,000 $ 300,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 5,100,000
O&M Costs: SW & Licenses $ -
HW $ -
Maintenance $ -
Facilities $ -
Telecomm $ -
Training $ -
Op Contingncy $ -
Misc Ops $ -
Annual O & M Cost $ 900,000 $ 900,000 $ 300,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ - $ -
O&M Costs: Cumulative $ 900,000 $ 1,800,000 $ 2,100,000 $ 2,700,000 $ 3,300,000 $ 3,900,000 $ 4,500,000 $ 5,100,000 $ 5,100,000 $ 5,100,000 $ 5,100,000

Total Cost of TCO: Proj. + O&M Costs:

Ownership (TCO) Cumulative $ 900,000 $ 2,060,000 $ 2,620,000 $ 3,220,000 $ 3,820,000 $ 4,420,000 $ 5,020,000 $ 5,620,000 $ 5,620,000 $ 5,620,000 $ 5,620,000

Cost Savings, Cost Avoidance, Increased Revenue & Other financial Benefits to the Organization:
1 2 3 4 5 6
Benefit 1. (Note 1.) $ - $ - $ 600,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ - $ - $ 2,100,000
Benefit 2. (Note 2.) $ - $ 100,000 $ - $ 100,000 $ - $ 100,000 $ - $ 100,000 $ 400,000
Benefit 3. (Note 3.) $ - $ - $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 600,000
Benefit 4. (Note 4.) $ - $ - $ - $ - $ - $ - $ - $ - $ -
Benefit 5. (Note 5.) $ - $ - $ - $ - $ - $ - $ - $ - $ -
SubTotal:Annual Benefits $ - $ 100,000 $ 700,000 $ 500,000 $ 400,000 $ 500,000 $ 400,000 $ 500,000 $ - $ -
Benefits
Cumulative Benefits $ - $ 100,000 $ 800,000 $ 1,300,000 $ 1,700,000 $ 2,200,000 $ 2,600,000 $ 3,100,000 $ 3,100,000 $ 3,100,000 $ 3,100,000
Note 1. Cost Savings: O&M savings compared to "Do Nothing" alternative ("Do Nothing" row 35 - row 35)
Note 2. Cost Avoidance: If we select this alternative, we will NOT have to purchase _______ in the "Do Nothing" scenario.
Note 3. Increased Revenues: If we select this alternative, our organization will collect additional revenues.
Note 4. Other cost savings, cost avoidance or increased revenues.
Note 5. Other cost savings, cost avoidance or increased revenues.

Cumulative ROI ROI=(ben-cost)/cost -100% -81% 54% 150% 227% 323% 400% 496% 496% 496% 496%
Note: The Breakeven year is where the ROI changes from a negative % to a positive %.

Notes:
Conventions used in the Cost Benefit Analysis (CBA) Toolkit:

1. The CBA Toolkit is an Excel Workbook containing five worksheets:

a.     Summary
b.    Do Nothing
c.     Alternative (Alt) 1.
d.    Alt 2.
e.     Alt 3.

2. Each worksheet contains locked cells. Those cells without color or gray are unlocked and indicate where data input is required. Cells with color or gray indicate those cells that are locked and cannot be edited.
a.     The password to unlock is: "CBA"

3. Data entered into last four worksheets (Do Nothing, Alt 1., Alt 2., Alt 3.) are used for calculations in the first worksheet, Summary.

Instructions for Completing CBA Calculations:

1.             Go to the spreadsheet tab Summary:

a.     Cell C1: Enter the name of the Project
b.    Cell B3: Enter in the period of analysis
                          i.    Note: The Project Management Standard requires six years of O&M analysis once the new product/system is implemented.
                          ii.    Note: Since it might require 1, 2, 3 years or more to implement the new product/system, the six year O&M analysis begins upon implementation.
                         iii.    In the example, it took two years to implement the new system, thus the period of analysis is eight years (2 + 6 = 8).
c.     Cell C4: Alt 1. Enter in very brief name of Alternative 1.
d.    Cell D4: Alt 2. Enter in very brief name of Alternative 2.
e.     Cell E4: Alt 3. Enter in very brief name of Alternative 3, if needed.
f.     The values presented are calculated in the last four worksheets and are re-presented here and cannot be edited in the Summary tab.
g.    Note that you can Unhide rows 6-18 and 21-22 if you wish. These also are values simply re-presented from the last four worksheets and cannot be edited in the Summary tab.

2.             Go to the spreadsheet tab Do Nothing:

a.     This tab represents (1) the current cost of owning and operating the current, legacy system, and…
….(2) the estimated cost of continuing to use the current, legacy system for the period of time it takes to implement Alternative 1, 2 or 3, plus six years.
b.    Cell C2: Enter in the first year (fiscal year (FY)) of analysis; the subsequent years will automatically populate, and all three Alternative tabs automatically populate, too.
Costs:
c.     Rows 3-16: Project Costs: There are NO project costs in the “Do Nothing” scenario.
d.    Rows 18-37: O&M Costs: As follows:
e.     Row 17: Adjust (using Copy & Paste) implementation year(s) and six years of O&M. Make sure all three Alternatives match the Do Nothing tab to ensure equivalent comparison.
f.     Rows 18-23: Staff Costs: Enter the number of (a) FTE IT staff, (b) FTE operations staff, and (c) Operations Contractors, and the annual cost for each.
g.    Rows 26-34: Enter in the O&M Costs.
h.     Note that the annual, (row 35) cumulative (row 36) and total (column M) O&M costs are calculated.
i.      Note that the cumulative (row 37) and total (column M) Total Cost of Ownership (TCO) (project + O&M costs) are calculated.
Benefits:
j.      Row 40: Move the six years of analysis (using Copy & Past) left or right to match the Do Nothing Tab. Make sure all three Alternatives match the Do Nothing tab to ensure equivalent comparison.
k.     Benefit 1.: <calculated field> : Cost Savings: O&M savings compared to "Do Nothing" alternative ("Do Nothing" row 35 - row 35)
                          i.    Note: For the “Do Nothing” scenario, there is no O&M savings to report, thus this value should be zero.
l.      Benefit 2.: Cost Avoidance: If we select this alternative, we will AVOID certain costs associated with the “Do Nothing” scenario.
                          i.    Note: For the “Do Nothing” scenario, this value should be zero.
m.   Benefit 3.: Increased Revenues: If we select this alternative, our organization will collect additional revenues, compared to "Do Nothing".
                          i.    Note: For the “Do Nothing” scenario, there likely is no additional revenues savings to report, thus this value should be zero.
n.     Benefit 4.: Other cost savings, cost avoidance or increased revenues. Explain the savings and the calculations.
o.    Benefit 5.: Other cost savings, cost avoidance or increased revenues. Explain the savings and the calculations.
p.    Note the cumulative Return on Investment (ROI) is calculated. ROI=(benefit - project cost)/project cost
q.    Note that the breakeven year can be determined where the ROI changes from a negative % to a positive %.

3.             For Alternatives 1, 2 and 3 (tab Alt 1., Alt 2., Alt 3.):
a.     Each Alt tab represents an alternative solution to the business problem presented in the BCAA.
b.    Cell C2: The first year (fiscal year (FY)) of analysis will automatically populate from the “Do Nothing” first year. Subsequent years will also populate.
Costs:
c.     Rows 3-16: Project Costs: Enter costs to implement the project.
                          i.    These figures are estimates; additional justification/explanation can be entered into BCAA.
                         ii.    Note: These figures can be copied and pasted directly into CTP project budget forms
d.    Rows 18-37: O&M Costs: As follows:
e.     Row 17: Make sure all three Alternatives match the Do Nothing tab to ensure equivalent comparison.
f.     Rows 18-23: Staff Costs: Enter the number of (a) FTE IT staff, (b) FTE operations staff, and (c) Operations Contractors, and the annual cost for each.
                          i.    These figures represent additional staff, above current staffing level.
                         ii.    If the solution results in fewer staff, those savings should be listed in Benefit 4 or 5 and explained.
                        iii.    These are estimates; additional justification/explanation can be entered into BCAA.
g.    Rows 26-34: Enter in the O&M Costs.
                          i.    These are full-cost estimates; (not the difference compared with today) additional justification/explanation can be entered into BCAA.
h.     Note that the annual, (row 35) cumulative (row 36) and total (column M) O&M costs are calculated.
i.      Note that the cumulative (row 37) and total (column M) Total Cost of Ownership (TCO) (project + O&M costs) are calculated.
Benefits:
j.      Row 40: Move the six years of analysis (using Copy & Past) left or right to match the Do Nothing Tab. Make sure all three Alternatives match the Do Nothing tab to ensure equivalent comparison.
k.     Benefit 1.: <calculated field> : Cost Savings: O&M savings compared to "Do Nothing" alternative ("Do Nothing" row 35 - row 35)
                          i.    Note: A positive value indicates a cost savings; a negative value indicates comparatively increased costs.
l.      Benefit 2.: Cost Avoidance: Cost Avoidance: If we select this alternative, we will NOT have to purchase _______ in the "Do Nothing" scenario.
m.   Benefit 3.: Increased Revenues: If we select this alternative, our organization will collect additional revenues, compared to "Do Nothing".
n.     Benefit 4.: Other cost savings, cost avoidance or increased revenues. Explain the savings and the calculations.
o.    Benefit 5.: Other cost savings, cost avoidance or increased revenues. Explain the savings and the calculations.
p.    Note the cumulative Return on Investment (ROI) is calculated. ROI=(benefit - project cost)/project cost
q.    Note that the breakeven year can be determined where the ROI changes from a negative % to a positive %.

Note: The password to unlock cells is: CBA.