The first scenario: CBA: $12,000.00 gained that year - $9,000.00 paid that year = +$3,000.00 earned that year ROI: ($12,000.00 gained that year - $9,000.00 paid that year) / $9,000.00 paid that year = .33 or 33% The second scenario: CBA: $4,500.00 saved that year - $2,000.00 paid that year = +$2,500 saved that year ROI: ($4,500.00 saved that year - $2,000.00 paid that year) / $2,000.00 paid that year = 1.25 or 125%

Option 3: The director can purchase more land for $10,000.00 and generate $15,000.00 from farming that extra land. Furthermore, the government has a $5,000.00 grant available to grow pineapples, but this money can only be spent on equipment and the costs of getting pineapples growing. The director will need to acquire a second-hand tractor ($4,500.00), repair the tractor ($400.00), and give it a snazzy new paint job ($100.00). There's also a tree in the middle of the plot of land, which will need to be destroyed and that will cost ($500.00). 1. Complete a CBA and calculate the ROI of Option 3. 2. Compare the CBA and ROI of all 3 options. 3. Decide what to implement via decision matrix for ROI and a separate decision matrix for CBA. The employee can now reply to the director and say, "In Scenario 1, we will earn more revenue, but the investment only returns $0.33 on every dollar. In Scenario 2, we will earn less revenue, but the investment returns $1.25 on every dollar spent." The director, knowing that a class is studying his farm as an example, says, "I will leave this decision up to the IST 402 Class to decide during this week's forum homework."