Please answer thoroughly and deeply Questions Describe the scarce resources facedbya business owner What is the point of a cost benefit analysis and what are three tools that can be used to perform it What are three cost benefit analysis tools a business can use What are some advantages of these tools What are some disadvantages of these tools Exercises Problems Identify whether each of thefollowing should be considered an investment amount or stream of profits when conducting a cost benefit analysis Investment Amount or Stream of Profits A business spends $10,000 to purchase a new machine A bank lends a business $50,000 for the purchase of a dump truck An investor receives dividend payments A company purchases a new computer system A company upgrades its existing cash registers A company realizes a savings from the operation of the new computer system Profits increase after a new phone system is installed Net income decreases Sales increase by $2,000 per month aftera new salesperson is hired A lender is repaid An investor recoups her investment in a startup The Family Kitchen restaurant currently makes profits of $85,000 per year They are considering an expansion opportunity that will increase their profits to $110,000 per year Which profits should they consider when conducting a cost benefit analysis Jones Landscaping invests $5,000 in a new lawn tractor and expects to earn an additional $1,250 per year from the use of this tractor The tractor is expected to last 7 years Calculate the ROI Calculate the payback period What does this tell you Computer support services currently cost ABC corporation $100,000 per year Next World Computer services has proposed to provide these same computer support services to ABC corporation for $80,000 per year There is a one time cost of $75,000 associated with transferring the files and training staff What is the investment amount What are the annual benefits What are the total profits over 5 years What is the ROI over 5 years What is the payback period

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Posted on Jun 23, 2024

Please answer thoroughly and deeply.

Questions

Describe the scarce resources facedbya business owner.
What is the point of a cost-benefit analysis and what are three tools that can be used to perform it?
What are three cost-benefit analysis tools a business can use?
What are some advantages of these tools?
What are some disadvantages of these tools?

Exercises/Problems

Identify whether each of thefollowing should be considered an investment amount or stream of profits when conducting a cost-benefit analysis.

	Investment Amount or Stream of Profits
A business spends $10,000 to purchase a new machine.
A bank lends a business $50,000 for the purchase of a dump truck.
An investor receives dividend payments.
A company purchases a new computer system.
A company upgrades its existing cash registers.
A company realizes a savings from the operation of the new computer system.
Profits increase after a new phone system is installed.
Net income decreases.
Sales increase by $2,000 per month aftera new salesperson is hired.
A lender is repaid.
An investor recoups her investment in a startup.

1. The Family Kitchen restaurant currently makes profits of $85,000 per year. They are considering an expansion opportunity that will increase their profits to $110,000 per year. Which profits should they consider when conducting a cost-benefit analysis?
2. Jones Landscaping invests $5,000 in a new lawn tractor and expects to earn an additional $1,250 per year from the use of this tractor. The tractor is expected to last 7 years. Calculate the ROI. Calculate the payback period. What does this tell you?
3. Computer support services currently cost ABC corporation $100,000 per year. Next World Computer services has proposed to provide these same computer support services to ABC corporation for $80,000 per year. There is a one-time cost of $75,000 associated with transferring the files and training staff.

- - What is the investment amount?
  - What are the annual benefits?
  - What are the total profits over 5 years?
  - What is the ROI over 5 years?
  - What is the payback period?