1) Perform a cost-benefit analysis using the following data: Direct cost: 10 laptops  2,000.00 each Server  2,000.00 Network Installation   15,000.00 Software   20,000.00   Indirect costs: Training    15,000.00   Annualized Benefits Increased Capacity   100,000.00   Analysis based on results: Parts a,b,c a)  State if the number of years represents a good or back payback period? b) Is it a good ratio? c) How likely ate the benefits to be realized and how will a decision be made?

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Author:WINSTON, Wayne L.
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Managing Quality Improvement Teams

1) Perform a cost-benefit analysis using the following data:

Direct cost:

10 laptops  2,000.00 each

Server  2,000.00

Network Installation   15,000.00

Software   20,000.00

 

Indirect costs:

Training    15,000.00

 

Annualized Benefits

Increased Capacity   100,000.00

 

Analysis based on results: Parts a,b,c

a)  State if the number of years represents a good or back payback period?

b) Is it a good ratio?

c) How likely ate the benefits to be realized and how will a decision be made?

 

Please show the full solution and analysis for this case.

Thanks

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