Project #78634 - Data Driven Decision Making Using Microsoft Excel

Benefit Cost Ratio

A company pland to spend $1,000,000 on a project resulting in a total savings of $2,500,000 over the life of a project.  Calculate the Benefit Cost Ration.  Show work.

 

A company also considered another project that would have partially satisfied needs.  It would required $750,000 investment and would result in savings of $125,000 per year for 10 years.  Calculate the Benefit Cost Ratio.  Show work.

 

Comparing only the BCRs explain which project should the company have chosen.

 

Payback Period

Calculate the payback period for the $1,000,000 investment shown above with the benefit cost ratio.  Show work.

Calculate the payback period for the $750,000 investment shown above with the benefit cost ratio.  Show your work.

 

Comparing only the payback periods, explain which project should the company have chosen.

 

Net present value

 

Calculate the net present value of the company's $1,000,000 investment with $250,000 annual savings for 10 years with an interest rate averages 3% annually.  Show work.

 

Net Present Value

Calculate the Net Present Value of the company's $1,000,000 investment with a $250,000 annual savings for 10 years when the interest rate averages 3% annually.  Show your work.

 

Thank you so much for all your help,

Kelly

Subject Business
Due By (Pacific Time) 08/08/2015 05:00 pm
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