Briefly identify three commonly used economic cost-benefit analysis techniques

What will be an ideal response?


Break-even analysis (BEA) is the process of finding the amount of time required for the cumulative cash flow from a project to equal its initial and ongoing investment. Net present value (NPV) uses a discount rate determined from the company's cost of capital to establish the present value of a project. Return on investment (ROI) is the ratio of the net cash receipts of the project divided by the cash outlays of the project. A trade-off analysis can be made among competing projects.
CL

Business

You might also like to view...

Which of the following would not be included as part of the documentation related to the substantive procedures for marketable securities?

a. A schedule of marketable securities prepared by the client. b. Reports of any outside valuation experts. c. Calculation of any potential impairments. d. Policies over purchase or sale of marketable securities.

Business

Chou Co. has a net income of $49,000, assets at the beginning of the year are $256,000 and assets at the end of the year are $306,000. Compute its return on assets.

A. 17.4%. B. 9.5%. C. 16.0%. D. 19.1%. E. 1.6%.

Business

A run test is used:

A) to examine variability in acceptance sampling plans. B) in acceptance sampling to establish control. C) to examine points in a control chart to check for natural variability. D) to examine points in a control chart to check for nonrandom variability. E) to test the validity of the Central Limit Theorem.

Business

In the context of factors that affect worker motivation, which of the following is a macro psychological component that underlies empowerment?

A. meaning B. learning C. influence D. competence

Business