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									                                                                                         GMAC RFC Confidential
                                                                                           Internal Use Only

                                                                        Cost Benefit Analysis
Project Name:                                          <Input data>                                  Submitted Date:                          <Input data>
Project Manager:                                       <Input data>                                  Estimated Start:                         <Input data>
Business Reviewer:                                     <Input data>                                  Estimated Completion:                    <Input data>
Document Preparer:                                     <Input data>                                  Statement of Work:                       <Input file name and path or attach hyperlink>
Business Area Sponsor:                                 <Input data>                                  Project Type:                            <Use Drop Down Arrow>

                                                         Initial Investment        Period 1               Period 2             Period 3           Period 4            Period 5
                   Financial Category                                                                                                                                                           Total
                                                        Project Start (Yr 0)         200x                 #VALUE!              #VALUE!            #VALUE!             #VALUE!
Enter in cell D12 the # of months remaining in Period 1 (if other than 12)            12
Direct Benefits:
<input description of benefit>                          $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -
<input description of benefit>                          $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -
<input description of benefit>                          $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -
<input description of benefit>                          $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -

Total Direct Benefits                                   $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -

Indirect Benefits:
<input description of benefit>                          $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -
<input description of benefit>                          $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -
<input description of benefit>                          $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -
<input description of benefit>                          $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -

Total Indirect Benefits                                 $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -

Total Direct & Indirect Benefits                        $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -

Capital Investment:
<input description of Capital Investment>               $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -
<input description of Capital Investment>               $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -

Total Capital Investment                                $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -

Business Costs:
<input description of Business   Cost>                  $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -
<input description of Business   Cost>                  $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -
<input description of Business   Cost>                  $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -
<input description of Business   Cost>                  $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -
<input description of Business   Cost>                  $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -
<input description of Business   Cost>                  $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -

Total Business Costs                                    $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -

IT Costs:
<input description of IT Cost>                          $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -
<input description of IT Cost>                          $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -
<input description of IT Cost>                          $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -
<input description of IT Cost>                          $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -
<input description of IT Cost>                          $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -
<input description of IT Cost>                          $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -

Total IT Costs                                          $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -

Total Costs                                             $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -

Net Cash Flow with Direct Benefits                      $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -

Net Cash Flow w/ Direct & Indirect Benefits             $                  -   $                 -   $                 -   $              -   $              -    $                -     $               -

Discount Rate = 15.00%

Net Present Value (NPV):
   NPV with Direct Benefits                                 #VALUE!
   NPV with Direct & Indirect Benefits                      #VALUE!

Internal Rate of Return (IRR):
   IRR with Direct Benefits                                       #VALUE! IRR expects at least one positive cash flow and one negative cash flow
   IRR with Direct & Indirect Benefits                            #VALUE! IRR expects at least one positive cash flow and one negative cash flow

Signature & Approval
Prepared By:                                                                   Reviewed By Finance Associate:                                                    Reviewed By Business Associate:

                        <Signature>                                                                      <Signature>                                                             <Signature>
<Insert Name>                      <Insert Date>                                     <Insert Name>                     <Insert Date>                             <Insert Name>                 <Insert Date>

      541eeb3e-9dd9-4687-8883-069105e558cb.xls CBA Template                                   Page 1 of 6                                                                 Printed: 8/16/2011
                                                                 GMAC RFC Confidential
                                                                   Internal Use Only

                                               Cost Benefit Analysis: Assumptions
Use this sheet to document assumptions.

          541eeb3e-9dd9-4687-8883-069105e558cb.xls Assumptions      Page 2 of 6          Printed: 8/16/2011
                                                    GMAC RFC Confidential
                                                      Internal Use Only

                              Residential Capital Group
                             Frequently Asked Questions

What costs do I include in a Cost Benefit Analysis (CBA)? The costs in the CBA include those cash
outflows that are directly associated with the project. Examples are as follows:

       Example 1 – A project requires a RCG IT System Analyst for 2 months. The Systems Analyst is a
       salaried associate and will be assigned specific project work. Since the person is directly associated
       with the project, the cost of this person should be included in the CBA. For many IT resources, there
       are standard Skill Set hourly rates that can be used to calculate labor costs. Refer to the attached
       Standard Labor Rate matrix for details.

       Example 2 - A project requires a $300,000 RCG capitalized asset purchase, and for accounting
       purposes, the asset will be depreciated over three years. This cost should be included on the CBA
       since it is directly related to the project. The full purchase price of $300,000 should be shown in the
       “initial investment column” as a cost at the beginning of the project, rather than shown as an expense
       over 3 years. As a result, the CBA will properly show the cash outflow of the project, rather than the
       accounting treatment.

       Example 3 – A project requires servers that will be provided by ETS. The additional server cost should
       be included in the CBA since it is directly related to the project. The amount to include in the CBA
       template is the on-going annual charge using the same amounts and timing that RCG will be charged
       by ETS.

Note: The costs to be included in the CBA include both Business and IT costs. The Business and IT costs are
entered in separate sections of the CBA template, so that these costs can be separately identified.

What benefits are included in the CBA? Benefits that are created as a result of the project should be
included in the CBA. In general, these benefits will be either incremental increases in revenue or incremental
decreases in cost.

    The CBA template requires all benefits to be categorized as either, a) direct or b) indirect benefits. A key in
    determining the categorization of direct vs. indirect benefits is the ability to trace the specific benefit to
    financial results.

       A direct benefit is defined as one that affects the organization’s bottom line. This benefit will be seen in
       the accounts of the organization; it directly improves the financial performance of the organization.

       An indirect benefit is defined as one in which it is difficult to make a credible connection between what
       can be measured and the impact on corporate financial results. Indirect benefits are harder to quantify,
       however, indirect benefits do have value and should be quantified and shown in the CBA whenever

If a project is started mid-year, should benefits be shown by Year One, Year Two, etc. or shown by
fiscal year? Enter the benefits on an annual basis by fiscal year (ex. 2006, 2007, 2008, etc.).

                                                   Page 3 & Policies
    541eeb3e-9dd9-4687-8883-069105e558cb.xls CBA Standards of 6                                      Printed: 8/16/2011
                                                   GMAC RFC Confidential
                                                      shown by
 If a project is started mid-year, should benefits beInternal Use Only Year One, Year Two, etc. or shown by
 fiscal year? Enter the benefits on an annual basis by fiscal year (ex. 2006, 2007, 2008, etc.).

How do I quantify increased loan volume in a CBA? In certain cases, information exists for estimating
detailed loan volume quantities by product and the applicable basis point spreads for those products.
Therefore, that information should be used and shown in the detail assumptions.

In situations where detailed information does not exist, quantify the benefits by determining the incremental
funded loan volume times the basis point spread. This alternative is referred to as the Gross Value Add (GVA)
methodology. The Residential Capital Group will use the GVA methodology as an interim solution until product
level cash-flow assumptions are derived.

Does the CBA reflect the cash-flow impact or P&L impact? The CBA template reflects the cash-flow
impact of the project, as this is the proper methodology for computing Net Present Value. The P&L impact is
not included in the CBA; however, this view can be added depending on business needs.

How does a CBA reflect the tax impact of this project? For simplicity purposes, the CBA template shows
costs and benefits before the impact of income taxes.

How much detail should be provided in the CBA? Any assumptions and related details should be added in
a separate worksheet(s) within the CBA template. Include as much detail as possible about the assumptions
and the calculations that comprise the costs and benefits in the CBA template. As a guide, a resource
unfamiliar with this project should be able to understand all the costs, benefits and project assumptions by
reviewing one document.

I have five inter-related projects that roll-up to one program. Should I prepare five individual CBAs or
one CBA at the program level? An outcome of preparing CBAs is to capture all the benefits created from
invested dollars. The desired outcome to consider is which method will better show the complete picture of
benefits for decision-making purposes. If the individual projects have specifically identifiable benefits related
to each of them, it is more likely that you would prepare five CBAs. If the benefits are primarily identifiable at
the program level, then a single CBA is appropriate.

When in the project lifecycle do I prepare a CBA? A CBA should be prepared as early as possible in the
project lifecycle, and no later than the Statement of Work (SOW) phase.

When preparing a CBA, how many years should I consider for estimating costs and benefits? The CBA
measurement period should extend for the length of time that there are incremental cash inflows or outflows.
For RCG, this will generally be 3 – 5 years.

What discount rate should I use? The discount rate included in the Net Present Value (NPV) calculation is
reviewed periodically. The current discount rate is 15%. For further guidance and the definition of the discount
rate, see the detailed CBA instructions.

Does anyone review the CBA for consistency of CBAs across RCG? All CBAs are reviewed by a RCG
Finance Senior Finance Officer (SFO), or their designee, to determine compliance with CBA Standards &
Policies as outlined in this document. The signature of a RCG SFO or their designee on a CBA signifies
compliance with the “Standards for Preparing a Cost Benefit Analysis.”

                                                    Page 4 & Policies
     541eeb3e-9dd9-4687-8883-069105e558cb.xls CBA Standards of 6                                     Printed: 8/16/2011
                                                                                                        GMAC RFC Confidential
                                                                                                          Internal Use Only

                                                                             Cost Benefit Analysis: Helpful Tables
IT Resource Standard Labor Rate
Cost Per Hour
Data as of July 2005

               RCG IT Skill Sets                      Per Hour
           Business Systems Analysis:
Business Systems Analyst II                       $         94
Business Systems Analyst III                      $        104
Sr Business Systems Analyst                       $        115
               Data Management:
Data Analyst I                                    $         83
Data Analyst II                                   $         90
Sr Data Analyst                                   $        112
Data Architect                                    $        122
              Project Management:
Project Lead                                      $         86
Project Manager I                                 $         99
Project Manager II                                $        107
Sr Project Manager                                $        123
Program Manager                                   $        136
           Quality Assurance & Testing:
Testing Analyst Il                                $         79
Sr Testing Analyst                                $         98
Sr QA Analyst                                     $        109
             Software Development:
Software Developer I                              $         78
Software Developer II                             $         89
Software Developer III                            $        102
Sr Software Developer                             $        118
Software Development Architect                    $        131
              Systems Engineering:
Systems Engineer I                                $         90
Systems Engineer II                               $        105
Senior System Engineer                            $        124
Systems Engineering Architect                     $        150
                Technical Writing:
Technical Writer I                                $         84
Technical Writer II                               $         87
Senior Technical Writer                           $         99

Examples of Direct and Indirect Benefits
Organizational Benefits                                                                       Operational Benefits
Improves company reputation or market position                                                Improves staff productivity by simplifying or streamlining operating procedures
Creates new market opportunities                                                              Creates new workflows/operating procedures
Allows the company to be more competitive                                                     Improves internal or external communications
Promotes company values and strategic decisions                                               Reduces staffing requirements
Meets legal and/or regulatory requirements                                                    Reduces training requirements
Improves external customer relationships and quality of service                               Eliminates or reduces the reliance on outsourced services
Aligns IT operations with business needs                                                      Provides ergonomic or other environmental benefits
Other Organizational Benefits                                                                 Other operational benefits

Technical Benefits                                                                            Financial Benefits
Improves systems reliability                                                                  Provides new sources of revenue
Improves systems security                                                                     Offers increased profitability for products and/or services
Improves systems performance                                                                  Reduces production costs
Replaces legacy systems no longer supportable                                                 Improves cash flow
Updates systems to current levels                                                             Provides tax advantages
Simplifies and streamlines technical support requirements                                     Reduces maintenance and support costs
Eliminates or reduces the reliance on external support or maintenance providers               Reduces facilities costs
Helps to meet Service Level Objectives                                                        Reduces overtime costs
Meets new business requirements                                                               Other financial benefits
Improves ease of use for end-users
Adds new functionality for end-users
Other technical benefits

Examples of Costs

Capital Investment                                                                            Business Costs or IT Costs
Hardware purchase (including warranty)                                                        Internal Labor
Hardware upgrades                                                                             Consulting fees and expenses
Software licenses (> 1 year)                                                                  3rd party vendor / IT provider fees and expenses
Capital Improvements                                                                          Software related annual expenses
Other Capital Investment                                                                      Leased hardware
                                                                                              Conversions and data extracts
                                                                                              Travel and related expenses
                                                                                              Training development
                                                                                              Training expenses
                                                                                              Legal Costs
                                                                                              One-time costs from disposal of existing assets
                                                                                              Operations costs
                                                                                              Maintenance costs
                                                                                              Support costs
                                                                                              Other recurring costs
                                                                                              Other IT related costs
                                                                                              Other Non-IT related costs

                 541eeb3e-9dd9-4687-8883-069105e558cb.xls Helpful Tables                                   Page 5 of 6                                                          Printed: 8/16/2011
                                                                                                 GMAC RFC Confidential
                                                                                                   Internal Use Only

                                                              Instructions For Using The CBA Template
1)    Read the "CBA Standards & Policies" worksheet.
2)    Go to the "CBA Template" worksheet.
3)    Enter the requested data in the "Project Information" section.
4)    Enter in cell D11 the year equivalent to "Period 1" for the Cost Benefit Analysis. The future period year data will dynamically update based on the input in cell D11.
      The "CBA Template" displays five periods (in years). If the CBA measurement period extends further than five years, expand the grouped columns by clicking
      on the "+" sign above column N.
5)    Enter in cell D12 the number of months remaining in Period 1 (note, 12 months in Period 1 is the default). This data point will enable the Cash Flow Analysis section
       to properly calculate the Net Present Value and Internal Rate of Return.
6)    Enter Benefits and Costs labels and data in the appropriate sections of the template. Refer to the "CBA Template" cell comments as necessary. Additional
      background and explanations of financial concepts are also noted below.
7)    Document assumptions used in the Cost Benefit Analysis in the attached "Assumptions" worksheet. Refer to the "Helpful Tables" worksheet if this information
       is applicable to the project.
 8)   Accept the default Discount Rate of 15% or overwrite it with an approved rate in cell B67.
 9)   Select and click the "Calculate" button in cell D70. This macro will verify that the "Analysis ToolPak" is selected on your computer's Excel Tools/Add-in menu.
10)   The project Net Cash Flow and Cash Flow Analysis will calculate based on the above inputs. Note, for simplicity purposes, the CBA template shows costs and
       benefits before the impact of income taxes. If there are significant and/or unusual tax implications related to this project, those should be factored into this
       cash flow analysis. For this scenario, contact your financial representative for further instructions.
11)    Review the data and results of the Cost Benefit Analysis per inputs to the "CBA Template" and "Assumptions" worksheets.
12)    Complete the Signature & Approval section.

                                                                 Explanations Of Financial Concepts
                                                                              Discounting Concepts
Discounting is based on the concept that investment funds have an opportunity cost, i.e. that they can earn a return if used on another project. Similarly, the
funds used may have a cost to acquire them - the cost of capital. Whenever investment dollars are allocated to a project, every effort should be made to ensure
that at a minimum they return what those funds cost or could have earned elsewhere.

Ideally, investment projects should be selected because they earn more than the opportunity cost of the funds invested in that project. Capital Budgeting is the
process by which the most desirable projects are selected in a competition for scarce investment dollars ($'s).

Discounting can be thought of as a process by which the Financial Analyst is compensating for the time value of money. For purposes of this discussion, the
time value of money will be referred to as the Discount Rate.

                                                                                   Discount Rate
The Discount Rate is the rate used to calculate the present value of future cash flows. A Discount Rate is required in the Net Present Value (NPV) and the
Internal Rate of Return (IRR) calculations described below. This rate represents the cost of capital applicable to the cash flows being discounted. For projects that
have the same risk as the company, the corporate Discount Rate is used. A higher or lower Discount Rate should be used if a project is either more or less risky
 than an average project. In instances where special financing is available, the Discount Rate should be adjusted to reflect the true after-tax cost of capital.
 Though RFC does not have a published Discount Rate, RCG Finance has suggested that a Discount Rate of 15% is reasonable and should
be used when performing Discount Analysis.

                                                                                   Present Value
A concept central to the topic of Discounting is Present Value. Present Value represents the discounted value of future cash flows. A Present Value is the
sum one would need today to achieve some specific future value, assuming a known interest rate (i.e. the Discount Rate) with annual compounding of the interest
and principal. The reason that Financial Analysts are concerned with the Present Value of the Expected Cash Flows is that it allows them to compare the
Initial Investment in today's dollars ($'s) with the Expected Cash Flows (i.e. net benefits) in today's dollars ($'s) thereby providing a standard of comparison
that takes into consideration the time value of money.

                                                                             Net Present Value (NPV)
Net Present Value (NPV) is another common method for determining the profitability of an investment. Net Present Value represents a project's net contribution to
wealth by considering the present value of expected cash flows and the initial investment. In general, any investment that yields an NPV greater than zero (0)
is considered profitable. However, funding approval for a given project will likely depend on how attractive its NPV is when compared to the NPV's of the other
projects that are competing against it for funding.

On the "CBA Template" worksheet, the Net Present Value of expected cash flows (i.e. net benefits) to the organization in Periods 1 through x is calculated
and appears in the Cash Flow Analysis section.

When the NPV over the timeframe of the project is positive, the sum of projected cash inflows over time exceed the total investment outlay in today's dollars.

Net Present Value, like Internal Rate of Return, is used to compare one investment opportunity with another. A major difference between the two is that
NPV provides the reader with a sense of the dollar ($) impact of the investment while IRR does not. In accounting terms, Net Present Value represents the
difference between the Present Value Of Expected Future Cash Flows minus the Present Value Of The Initial Investment. Another way to express this
is by saying that NPV indicates the dollar amount of valuation added to the company by taking on a given project .

                                                                             Internal Rate of Return
The Internal Rate of Return (IRR) of an investment is the rate that causes the net present value of the investment to equal zero. In other words, the IRR is
the rate that causes the present value of the inflows from an investment to exactly equal the cost of the investment.

Internal Rate of Return, like Net Present Value (NPV), is used to compare one investment opportunity with another. An attractive investment is one whose
NPV, discounted at the appropriate hurdle rate, is greater than zero (0). Turn that equation around and you can see that the interest rate required to generate a
Net Present Value of zero must be greater than the discount rate. Thus, an attractive investment is one for which the interest rate required to yield a NPV
of zero (0) —that is, the IRR—is greater than the Discount Rate.

Suppose that you are presented with an opportunity to invest in a system enhancement that is estimated to cost $80,000 and is expected to save the organization
$25,000 per year over the next five (5) years. Would this investment promise an acceptable return if the discount rate is set at 15%? Using the "CBA Template"
worksheet, you learn that the IRR is approximately 17%. This means that this investment will return 2% more (17% - 15%) than would have been
gained by investing the $80,000 at 15% interest during the same period. Since the IRR is marginal, approval of this project will depend on whether or not
other project(s) competing against this project for funding will yield greater Internal Rates of Return.

              541eeb3e-9dd9-4687-8883-069105e558cb.xls Instructions                                 Page 6 of 6                                                                Printed: 8/16/2011

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