Help....Unit 10.

littlemoo Registered Posts: 1 New contributor 🐸

I have never been on the discussion forum before.

I'm really stuck with K&U 9 - Techniques for reviewing recommendations through cost-benefit analysis. My tutor has said i need to consider techniques - reference Investment Appraisal methods but this means nothing to me, i'm not a manager and finding this a little hard.

Can someone explain in lamens terms what i'm supposed to do here.



  • speegs
    speegs Registered Posts: 854 Epic contributor 🐘
    Hi Littlemoo.

    Unfortunately, I do not know what Investment Appraisals are, but I do know about cost benefit analsysis.

    Cost benefit analysis is a fancy name for something really simple.

    All you have to do is list all the costs of implementing your recommendations and then say what the benefits would be of implenting your recommendations, thus justifying the expenditure.

    So for example:

    I want to purchase a new IT server:

    The cost is going to be £20,000.

    The benefits would be:

    Extra reliability.
    Lower electricity bills because the new server uses less power.
    Staff could have access to work remotely with the new server.


    Another example:

    I want to train up my staff to become MAATs.

    The cost is going to be £3000 ish.

    The benefits would be:

    Better qualified staff.
    Improved staff motivation.
    Staff will become multiskilled.

    It is this sort of thing anyway. I hope that helps. PM me if you need any more assistance.

    Speegs :thumbup1:
    PAMDILL Registered Posts: 721 Epic contributor 🐘
    Investment appraisals are covered in Unit 6 - ECR.

    You work out how much your scheme is initially going to cost, then how much saved over it's useful life.

    Using payback method you see where the project breaks even, or using dicounted method you need to know how much your money is worth over that period in time if you had just stuck it in the bank.
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