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Abstract

Cost-benefit analysis on an animal health program involves considerable data collection and analysis. The analysis step involves expressing data in the form of cash flows, and then performing discounted cash flow (DCF) analysis. The output of DCF analysis consists of one of more of the various economic performance criteria - such as net present value, internal rate of return and benefit-to-cost ratios - which assist decision makers in judging whether to proceed with a project. This discussion paper examines the ‘hands-on’ side of cost-benefit analysis, viz. using a computer to carry out the analysis. Here, cash flow data are entered into electronic spreadsheet, and the various spreadsheet financial functions and presentation features are utilized to summarise estimated project performance.

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