Value for money analysis should be the accepted basis of valid decisions, taken by individuals, business and governments. It exists to provide for wise investment and to obtain demonstrable benefits for the money invested.
There is no shortage of literature available, science-based and otherwise, involving many concepts, processes and techniques to dissect and discuss value for money, ie value analysis. Each has a role to play but, unfortunately, these subjects are often confused and misused, deliberately or in ignorance.
This article discusses the basics of:
- Business cases
- Benefits to Cost
- Cost-effectiveness
- Discounted cash flow analysis
- Risk analysis
- Sensitivity analysis