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Cost-Benefit Analysis
Evaluate investment and business decisions with cost-benefit analysis
cost-benefit-analysisdecision-analysisfinancebusiness-analysisnpv
Prompt Template
Perform rigorous cost-benefit analysis for this decision:
**Decision:** {decision}
**Options:** {option_a} vs {option_b}
**Timeframe:** {years} years
**Option A: {option_a}**
**Costs:**
- Initial: ${initial_cost_a}
- Annual operating: ${annual_cost_a}
- One-time costs: ${one_time_a}
- **Total PV of Costs:** ${total_cost_a}
**Benefits:**
- Annual revenue/savings: ${annual_benefit_a}
- One-time benefits: ${one_time_benefit_a}
- Intangible benefits: {intangible_a}
- **Total PV of Benefits:** ${total_benefit_a}
**Net Present Value:** ${npv_a}
**Benefit-Cost Ratio:** {bcr_a}
**ROI:** {roi_a}%
**Option B: {option_b}**
[Same structure]
**Comparison:**
| Metric | {option_a} | {option_b} | Winner |
|--------|------------|------------|--------|
| NPV | ${npv_a} | ${npv_b} | {winner_npv} |
| BCR | {bcr_a} | {bcr_b} | {winner_bcr} |
| ROI | {roi_a}% | {roi_b}% | {winner_roi} |
| Risk | {risk_a} | {risk_b} | {winner_risk} |
**Sensitivity Analysis:**
[Table showing how NPV changes with key assumptions]
**Qualitative Factors:**
- Strategic fit: {strategic}
- Implementation ease: {implementation}
- Risk level: {risk_level}
**Recommendation:** {recommendation}
**Rationale:** {rationale}
Provide: Quantitative analysis + sensitivity + recommendation.Variables to Replace
{decision}{option_a}{option_b}{years}{initial_cost_a}{annual_cost_a}{one_time_a}{total_cost_a}{annual_benefit_a}{one_time_benefit_a}{intangible_a}{total_benefit_a}{npv_a}{bcr_a}{roi_a}{npv_b}{bcr_b}{roi_b}{winner_npv}{winner_bcr}{winner_roi}{risk_a}{risk_b}{winner_risk}{strategic}{implementation}{risk_level}{recommendation}{rationale}Pro Tips
Include intangible benefits. Do sensitivity analysis. Use consistent discount rate. Consider option value.
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