Use a discount rate of 3% for costs and benefits occurring in the future

Change Management and Project Analysis

Assignment 2: Cost-Benefit Analysis (5 pages)

Guidelines and Rubric

At this juncture, you will have developed a grasp of the skills related to data analysis. Using your DNP Project, the task at hand is to generate a cost-benefit analysis (CBA) that you could use to illustrate costs and benefits associated with your project, as part of the overall program evaluation plan.

Concepts and Issues in Economic Evaluation PDF in McDavid, Huse, and Hawthorn (2013) describes a nine-step process for creating a CBA on page 287 along with an example beginning on page 296. Please create a CBA (5 pages- excluding title page and references- do not include an abstract) of your healthcare change intervention utilizing only the steps that are detailed below under #1.

Grading Rubric Possible Points

Description of the CBA as discussed in Chapter 7
Specify the set of alternatives- the status quo may be an alternative
you consider 2 points

Decide what benefits and costs count 2 points
Categorize the costs and benefits 3 points

Monetize (attach a dollar value to) all costs & benefits 4 points

Use a discount rate of 3% for costs and benefits occurring in the future (you can go from 3-5 years for the calculation) 3 points

Compute the benefit-cost ratio of your program (ratio of total discounted
benefits to total discounted costs) & Net Present Value (NPV) 3 points

Calculate the Return on Investment (ROI) 3 points

Make a recommendation about implementing your project. Does this economic evaluation support it? Justify your recommendation 5 points

Graphical or tabular display of the actual CBA analysis 6 points

APA 7th edition format; use of correct grammar, spelling and punctuation;
adherence to standards of scholarly writing 4 points
Total 35 points