Calculate a benefit-to-cost ratio

Assignment Help Project Management
Reference no: EM131435803

Project Selection Journal Guidelines

You are a project manager for a local company that is considering installing a new content management system. Your boss has asked you to do a net present value (NPV) analysis, calculate a benefit-to-cost ratio, and tell him what the payback period will be for this investment. After careful analysis, you have developed the table below. It outlines the benefits and investment costs for the next 5 years. Assuming your company's cost of capital is 10 percent, you are to determine:

1. The net present value of the project

2. The benefit-to-cost ratio

3. The payback period

Years

Benefits

Investment Costs

0

0

$10,000

1

$10,000

$20,000

2

$30,000

$20,000

3

$60,000

$50,000

4

$100,000

$50,000

5

$100,000

$50,000

Journals are private between the student and the instructor. Approach these activities as (a) an opportunity to reflect upon and apply what you learn each week based on the assigned readings, discussions, and activities, and (b) an opportunity to share your knowledge and expertise based on your educational and professional experiences in the past. As a successful professional, you will need good reflective and writing skills. Journal activities offer you the opportunity to further develop these skills. For more information about Blackboard blogs and journals, review these tutorials.

Verified Expert

In this assignment based on the given values we have to calculate the Net Present value, Benefit-to-cost ratio and the payback period. In the case study the investment and benefit values are given is for 5 years and the only assumption that we did is that capital is of 10%.

Reference no: EM131435803

Questions Cloud

What will be the optimal time to sell the machine : A machine costs $2000 and gives cash inflow of $25000 a year for three years. If the firm can sell the machine at Year-1,2,3 , what will be the optimal time to sell the machine. The maintenance cost and the salvage value are as follows: Year Maint..
Prepare a performance report using spreadsheet software : Prepare a performance report using spreadsheet software, such as Excel. Hint: Read the Weekly Briefing and watch the Performance Report video on this topic.
Frictionless horizontal surface as shown : A small block of mass m1 is released from rest at the top of a curve-shaped, frictionless wedge which sits on a frictionless horizontal surface as shown. The height of the wedge is h = 5m.
On this basis , find the replacement strategy. : A widget manufacturer operates two machines , each of which has a capacity of 1000 units a year. They have an indefinite life and zero salvage value. The operating cost is $2 per widget. Widget is a seasonal business.
Calculate a benefit-to-cost ratio : QSO 645 Project Selection Journal Guidelines. You are a project manager for a local company that is considering installing a new content management system. Your boss has asked you to do a net present value (NPV) analysis, calculate a benefit-to-cos..
Employee representation across demographic categories : Examine the percentages of employee representation across demographic categories for Tanglewood and the available labor market for Table 1.3. Are there any particular classes or jobs where the representation within Tanglewood appears to be out of lin..
Explain and define four of seven general moral principles : Describe and define four of the seven general moral principles, and explain how the moral principles you chose, could improve an organizations' ethical climate. Please provide examples to support your statements.
Problem related to one off decision : A corporation is considering replacing an existing machine with a new machine. The new machine costs $60,000 plus installation costs of $2,000. It will generate revenues of $155,000 annually and cash expenses annually of $100,000.
Create a range named volunteer-hr : On the Club Information worksheet, in range H6:H16, create a range named Volunteer_Hrs. In range D6:D16, create a range named Class.

Reviews

len1435803

3/22/2017 12:41:46 AM

Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Project Selection - Entry clearly describes the project selection with specific relevant examples. Calculations - Effectively works with numerical data and solves quantitative problems with accurate calculations. Synthesis - Entry shows excellent evidence of synthesis of the module content and exhibits careful consideration of the topic. Writing - Entry is free of errors in organization and grammar.

Write a Review

Project Management Questions & Answers

  Create a project schedule and align resources

Create a project schedule and align resources, Analyze project schedule and resource allocation

  Managerial roles and gap analysis

Write a report on Managerial Roles and Gap Analysis

  Questionaire on project management

Questionaire on Project Management

  Describe the market growth rate for product

Describe the market growth rate for product and service.

  Prepare a work plan and project schedule - gantt chart

Design an online system for the human resources department to manage available job positions.

  Project risk management approach

How does a project risk management approach pro-vide an early warning signal for impending problems or issues

  Black-scholes options pricing model

Calculate the payoff and the profits for investments

  Describe the features or characteristics of product

Describe the features or characteristics of your product or service.

  Write paper on inventory management system

Write paper on Inventory Management System.

  Analysis of the overall project risk

Analysis of the overall project risk

  Investment and performance analysis

Evaluate the usefulness of ROCE

  Distribution strategy and project management

Distribution strategy and project management

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd