PROJECT ANALYSIS AND EVALUATION-ASSIGNMENT ON Cost Benefit Analysis

(a) What do you understand by Cost Benefit Analysis?

(b)  Omoboriowo provides the following data from a project as shown in the

           table below:

Year	Cost	Benefit	Discount Factor@8%	NPV of Cost	NPV of Benefit
1	40,000	0	0.926
2	30,000	15,000	0.857
3	20,000	30,000	0.793
4	20,000	60,000	0.735
5	15,000	90,000	0.681
Total

Required:

i. Copy and complete the table above.

ii. Calculate Net Benefit

iii. Calculate Cost Benefit Ratio

iv. Calculate Benefit Cost Ratio

v. Calculate Net Cost if the total benefit reduced by 30%.