Angsaya_S40065765_Organisation_asst1.pdf - COVER SHEET Family Name Ros-ocha Given Name Angsaya Student ID Course S40065765 Advance Diploma of Leadership

# Angsaya_S40065765_Organisation_asst1.pdf - COVER SHEET...

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Assessment 1 Part A – Cost-Benefit Analysis Instructions Analysis for a change project that is being considered reveals that it will cost \$70,000 to establish (in year 0), and that the recurring costs for the next 3 years will be \$25,000 (in years 1, 2 & 3). There will be no benefits in year 0, but there will be \$96,000 worth of benefits each year in years 1 through to 3. Using the formula above, calculate the payback period and the ROI. What is your recommendation? Years Benefits Costs 0 \$0 \$70,000 1 \$96,000 \$25,000 2 \$96,000 \$25,000 3 \$96,000 \$25,000 TOTAL BENEFITS \$288,000 TOTAL COSTS \$145,000 The payback period is 2 years. The Return on Investment (ROI) is 98.62% . Would you recommend it as a good investment? Justify your answer. This project is a good investment due to a very high return on investment (ROI) and short payback period and the return on investment (ROI) is 98.62%, it is a measure of the profitability as a high as well.
Assessment 1 Part B – Risk Analysis

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