Question
A Car Maintenace company is planning to expand its business, and for that, it will require four new employees in the organization. For analyzing whether
A Car Maintenace company 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 is the information available related to the 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 35 %, i.e., the revenue benefit will be around $ 400,000. Also, due to the new hiring, the company value of the business will increase, which would result in additional revenue of $ 55,000. The salary of the new employees is estimated to be $ 200,000. The additional cost of hiring is estimated to be $ 18,000. The cost of additional equipment required will come at around $ 35,000 Analyze the expansion using Cost-benefit analysis
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