5.3: Economic Scoring Models
Notes
Economic Model Comparison Tables
Fill in the following tables as you read through the chapter:
Payback
Formula for Calculating |
|
How is result of formula expressed? |
|
Advantages |
|
Disadvantages |
|
Notes |
|
Net Present Value
Formula for Calculating |
|
How is result of formula expressed? |
|
Advantages |
|
Disadvantages |
|
Notes |
|
Internal Rate of Return
Formula for Calculating |
|
How is result of formula expressed? |
|
Advantages |
|
Disadvantages |
|
Notes |
|
Benefit to Cost Ratio
Formula for Calculating |
|
How is result of formula expressed? |
|
Advantages? |
|
Disadvantages? |
|
Notes |
|
Check Your Knowledge: Economic Scoring Models
Questions: Economic Scoring Models
Project | Capital Costs | Ongoing Costs Per Year | Revenue Per Year | Number of Years of Operation |
Vitamin D | $45,000 | 10,000 | 33,500 | 5 |
Vitamin C | $37,900 | 10,000 | 25,000 | 5 |
Vitamin A | $23,000 | 12,000 | 23,000 | 5 |
Vitamin E | $51,500 | 10,000 | 37,600 | 5 |