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

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