Assuming monetary benefits of a project at $85,000 per year, one-time costs of $75,000, recurring costs of

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Assuming monetary benefits of a project at $85,000 per year, one-time costs of $75,000, recurring costs of $35,000 per year, a discount rate of 12 percent, and a

5-year time horizon. Please

calculate the net benefit

calculate the overall return on investment (ROI) of the project

Estimate the break-even point

PV_n = Y /(1+i)ⁿ the present value of year n with the discount rate i

ROI = (Net Benefit)/(Total Cost)

During the year with a positive overall cash flow, then

Break-Even Point = (Yearly Cash Flow – Overall Cash Flow)/(Yearly Cash Flow)

Related Book For answer-question

Cost Benefit Analysis Concepts and Practice

ISBN: 978-0137002696

4th edition

Authors: Anthony Boardman, David Greenberg, Aidan Vining, David Weimer

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Posted Date: Jun 23, 2022 04:55 AM

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Assuming monetary benefits of a project at $85,000 per year, one-time costs of $75,000, recurring costs of

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Cost Benefit Analysis Concepts and Practice

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