ii) Discuss how you would establish the monitoring and evaluating framework for the identified areas of opportunities. 

iii) Complete the table and perform cost benefit analysis by determining the net present value of proposal. Once the table is complete, based on your cost benefit analysis, determine the best possible option. The proposal and context scenario are given below:  Consider an option that will require Qantas to install new equipment to limit air pollution. The equipment costs $5 million to install and will operate for the following four years. Ongoing (annual maintenance) costs to business are $1 million a year (in constant prices). The benefits are estimated at $3 million a year (in constant prices. The discount rates are 3 per cent, 7 per cent and 10 per cent. Complete the table by Calculating net present values:

To determine the net present value (NPV) of an option, the costs and benefits need to be quantified for the expected duration of the proposal.

The net present value is calculated as:

NPV = (Bt-Ct)/1+r)t)

Given: -

Bt= the benefit at time t

Ct= the cost at time t

r = the discount rate

t = the year

T = number of years over which the future costs or benefits are expected to occur (the current year being year 0).

Year	Costs (Ct)	Benefit (Bt)	Annual net benefit (Bt-Ct)	Net Present Value
				Proposal 1 (discount rate is 3%)	Proposal 2 (discount rate is 7%)	Proposal 1 (discount rate is 10%)
Year 0	5	-	-5
Year 1	1	3	2
Year 2	1	3	2
Year 3	1	3	2
Year 4	1	3	2
Net present value of proposal

Answer rating: 100% (QA)

To establish a monitoring and evaluating framework for the identified areas of opportunities the following steps can be taken Define Key Performance I... View the full answer