Question

The following cost information was calculated for a proposed birdhouse: Costs Capital Operating $4.00 0.50 Lumber Nails Addit
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Recurring expenses (additional birdseed) and benefits (joy o bird watching) are incurred/ accried on weekly basis. However, these are taken at yearly basis for calculation of BCR.

Hence yearly expenses towards additional birdseed= $1.50*52 = $78

Yearly value of benefit (joy of bird watching)= $5*52= $260

Benefit/ Cost ratio= 3.23 as detailed below:

Since the Benefit Cost Ratio is higher than 1, the project will have positive NPV and the same is acceptable. The birdhouse shall be built.

Add a comment
Know the answer?
Add Answer to:
The following cost information was calculated for a proposed birdhouse: Costs Capital Operating $4.00 0.50 Lumber...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Solve for alternative A and B coal-powered generating facility at a cost of $19,000,000 Annual power sales are expected...

    Solve for alternative A and B coal-powered generating facility at a cost of $19,000,000 Annual power sales are expected to be $1,100,000 per year. Annual operating and $220,000 per year. A benefit of this alternative is that it is Alternative A. Build a maintenance costs are expected to attract new industry, worth $550,000 per year, to the region. Alternative B. Build a hydroelectric generating facility. The capital investment, power sales, and operating costs are $27,000,000, $700,000, and $80,000 per year,...

  • I need Summary of this Paper i dont need long summary i need What methodology they used , what is the purpose of this p...

    I need Summary of this Paper i dont need long summary i need What methodology they used , what is the purpose of this paper and some conclusions and contributes of this paper. I need this for my Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS PLEASE !!!) Budgetary Policy and Economic Growth Errol D'Souza The share of capital expenditures in government expenditures has been slipping and the tax reforms have not yet improved the income...

  • Ch 1 1. Given the following dat Dec 31 Year 2 Dec 31 Year 1 Total...

    Ch 1 1. Given the following dat Dec 31 Year 2 Dec 31 Year 1 Total liabilities S128,250 $120,000 Total stockholders oquity 95.000 80.000 compute the ratio of liabilities to stockholders' equity for each year Round to two decimal places 1.50 and 107, 11.35 and 1.50 respectively respectively 1.07 and 1.19. 1.1.19 and 1.35 respectively respectively The liabilities and stockholder's equity of a company are $132,000 and $244.000, respectively. Assets should equal SS188.00 $132.00 p $376,00 12.000 A financial statement...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT