ehealth - Programmes - Full Business Case Guide

° adjustments for optimism bias° increased cost to cover risks/dependences and providecountermeasures° amendments based on sensitivity analysis° modifications for inflation (only during times of particular inflationary /deflationary factors then apply retail prices index (RPI) to calculate futurecosts)° all capital and revenue costs° breakdown schedule of costs by financial year for the project life;• the total savings benefits for the project life including -° amendments based on sensitivity analysis° estimated values for qualitative benefits° adjustments for optimism bias° breakdown schedule of costs by financial year for the project life; and• understanding of the project and the business.InstructionsStep one: Consider the shortlist options -• add/remove option… rows as appropriate to provide a set of four rows foreach shortlist option (option, costs, benefits, NPV); and• enter the option description in the corresponding box in the option’s row.Step two: Determine the financial years with funding for the life of the project(year 0 is the start of the project and the financial year is April - March) -• add remove/year… columns as appropriate; and• replace the year heading with the physical financial year e.g. 09/10 etc.Step three: Discount factor -• enter the discount factor for each financial year of the project life.Want to know more … about discount rates?To find out more about the discount rate see the SCIMBusiness Case Guide OBCStep four: For each option in turn -• enter the project cost for each financial year in the corresponding yearcolumn; and• enter the project benefits monetary value in each financial year in thecorresponding year column.Step five: For each option NPV for each financial year throughout the projectlife -• multiply the benefit value by the discount factor in the correspondingcolumn;• add the corresponding year costs; andeHealth - Programmes - Guide - Initial Agreement 31Objective: F3033421 1.1