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Cost Benefit Analysis: Example Project
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(Note: Fill out YELLOW fields.)
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Period of Analysis =
9 years
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Do Nothing Alt 1: Alt 2: Alt 3:
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Project Cost n/a $ 2.560.000 $ 1.666.000 $ 1.200.000
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Total O&M Cost $ 8.100.000 $ 3.900.000 $ 5.250.000 $ 6.228.000
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TCO: Project + O&M $ 8.100.000 $ 6.460.000 $ 6.916.000 $ 7.428.000
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Cumulative benefits n/a $ 4.900.000 $ 4.050.000 $ 2.672.000
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Cumulative NET benefits n/a $ 2.340.000 $ 2.384.000 $ 1.472.000
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ROI: (bene-cost)/cost0%91%143%123%
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Breakeven Year: n/a 202920292028
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