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| | Cost-Benefit Analysis Guide for NIH IT Projects |
 | | The analysis is greatly simplified because the best alternative is either the one with the most benefits (when the costs are the same for all alternatives) or the one with the lowest cost (when the benefits are the same for all alternatives). |
 | | A Cost-Benefit Analysis should be commensurate with the size, complexity and cost of the proposed project, and project managers have to decide what level of analysis is necessary for a specific project in their IT management environment. |
 | | In the previous example, the cost-benefit analysis could be used to increase the budget for a project to $2,255,000; however, if the budget falls between $1,500,000 and $2,025,000, the best alternative would be 2, with a cost of $1,600,000, a discounted net of $150,000, and a cost-benefit ratio of 1.09. |
| irm.cit.nih.gov /itmra/cbaguide.html (11184 words) |
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