GitHub/quartz
1
0
Fork 2
mirror of https://github.com/jackyzha0/quartz.git synced 2025-12-24 13:24:05 -06:00
Code Issues Actions Packages Projects Releases Wiki Activity

vault backup: 2022-06-12 14:17:30

Browse Source
This commit is contained in:
Jet Hughes 2022-06-12 14:17:30 +12:00
parent bdc885c973
commit a25e5877e7
1 changed files with 18 additions and 1 deletions
Show Stats Download Patch File Download Diff File Expand all files Collapse all files

19
content/notes/25-cost-benefit-analysis.md
View File

@ -85,8 +85,25 @@ e.g.,
- payback period - how long until accumulated benefits equal the cost - payback period - how long until accumulated benefits equal the cost
- NPV: sum of costs and benefits , but future years discouted - NPV: sum of costs and benefits , but future years discouted
- ![example](https://i.imgur.com/W6lhzKb.png) - ![example](https://i.imgur.com/W6lhzKb.png)
- ![](https://i.imgur.com/rpOBYdc.png)
- ROI: what is the discounted benefit relative to the costs - ROI: what is the discounted benefit relative to the costs
- ![](https://i.imgur.com/puvRpYm.png)
- ![](https://i.imgur.com/19rMyQa.png)
# Example: what is better
- ![](https://i.imgur.com/nxMstV5.png)
- financial analysis isn't everything
- possible reasons to ignore a financial analysis
- organisational: ack of institutional will, or not aligned with strategy, or legislated requirement
- technical
- legal risk
- reputational risk
# Comparing methods
- payback: ignores discounting; gives a *year*
- NPV considers discounting, give *net benefit* in financial terms, but ignores time and amount invested
- ROI considers discounting and amount invested, but ignored time period; gives a *percentage*
- -
![summary](https://i.imgur.com/rnBdIfg.png)