At PECL, we allocate much consign to the cost analysis of each project (also called cost-benefit analysis, or CBA).
It is a detailed outline of the potential risks and gains of a projected venture. Many factors are involved, including some abstract considerations, making the creation of a CBA for PECL more of an art than a science, though a quantitative mindset is still a must-have.
Although conducting a CBA can be a complex task, but At PECL we brainstorm, research, and analyze data to make a top-quality CBA.
These are our main steps in CBA calculations:
- Step 1: Define your CBA's unit of cost
- Step 2: Itemize the tangible costs of the intended project
- Step 3: Itemize any and all intangible costs
- Step 4: Itemize the projected benefits
- Step 5: Add up and compare the project's costs and benefits
- Step 6: Calculate a payback time for the venture
- Step 7: Use your CBA to inform your decision about whether to pursue your project