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creating a cost-benefit analysis




Question;Use the net present value methodology when creating a cost-benefit analysis to evaluate the following project:The State of Massachusetts would like to replace a National Guard armory rapidly reaching the end of its service life. The Department of Military Affairs has been told that continued special maintenance would be $275,000 annually. Rehabilitation of facility would cost $4,000,000, and would extend the armory?s service life by 15 years.Calculate the discount factor for each year (use 4% discount rate @ 15 years)Calculate the annual present value cost of maintenance (15 years)Calculate the discounted benefit of rehabilitating the armoryGiven the discounted cost of rehabilitation, what is the cost- benefit ratio for the proposal?Be sure to include information regarding the following items when completing your evaluation of the project:the objectives of the projectthe demand and consumer surplus of the projecta categorization of the project expensesan estimation of potential delays


Paper#50414 | Written in 18-Jul-2015

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