Sports International limited is planning to expand its business, and for that, it will require four new employees in the organization. For analyzing whether the expansion is beneficial or not, the management of the company decides to use the cost-benefit analysis. The following are the information available related to benefits and costs related to expansion:

• Within the time frame of one year, it is expected that if the company hires four employees for the expansion, then the revenue of the company will increase by 50 % note that the revenue benefit will be around $ 250,000.
• Also, due to the new hiring, the company value of the business will increase, which would result in additional revenue of $ 30,000.
• The salary of the new employees is estimated to be $ 160,000.
• The additional cost of hiring is estimated to be $ 15,000.
• The cost of additional hardware and software required will come at around $ 25,000

A) Calculate BCR ?

B) what does the cost benefit analysis indicate?

Answer rating: 100% (QA)

To calculate the BenefitCost Ratio BCR we need to add up all the b... View the full answer