Cost-Effectiveness Model

As discussed earlier, traditional cost–benefit analysis was often an application of cost-effectiveness models.

This model ignores benefits and focuses on costs and risks only. In effect, the process is relatively simple. As shown in Figure 9.7, the costs of maintaining the status quo or base case are estimated over an agreed-on period of time.

Figure 9.7. Cost-effectiveness

The development and support costs of the proposed solution are also estimated over the same period and, if the total development and support costs of the proposed solution are less than the ongoing support costs of the base case, then the proj ect is ...

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