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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%.

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