Prepare a cost benefit analysis to help making decision based on the scenario given below.

Identify the framework of your cost benefit analysis (i.e., goals and objectives; metrics to be used e.g., currency)

Identify cost and benefits

Assign a dollar amount to the costs and benefits identified; and be able to show support by collecting and using appropriate information

Compare the total value of benefits and costs

Scenario - Replacement of hotel vacuum cleaners

In support of sustainability, the general manager of Seneca Hotel is considering replacing all its old vacuum cleaners, which are used in cleaning up guest rooms.

The new cleaners have to be more energy efficient, with better HEPA and filtration system.

Background of the hotel

A 3-star hotel in Niagara Region with 200 rooms

Average occupancy is 70% with ADR of $80

On average, each housekeeper can clean up a room in 30 minutes.

Check out time of the hotel is 11am and check in is 3pm

Of all the rooms needed to be cleaned, approximately 80% have to be done during 11am to 3pm

All housekeepers are scheduled a 9-hour work day with 1 hour break (no paid)

With the new vacuum cleaners, 2 minutes can be saved on cleaning up each room

The power of existing vacuum cleaners are 1,800 watts

Marking rubrics:

Framework of the cost benefit analysis

A minimum of 5 benefits and 5 costs with appropriate support

Presentation

Files to be submitted:

Cost benefit analysis template

Presentation file