The city has required a return of 12 percent and a critical acceptance level of 2.75 years. While neither project meets all critical, Option B does meet the internal rate of return. In determining the payback period, the formula used included total capital costs minus benefits. The total capital cost is $-3,500,000.00 for Option A minus benefits made the payback period 7.475 years. While the total capital costs for Option B is $-3,000,000.00, minus benefits making the payback period 5.0 years for Option B. Additionally, the internal rate of return calculation includes the capital costs and benefits. For Option A, capital cost is $-3,500,000.00 with total benefits equaled to $5,220,000.00 created an internal rate of return of eight percent. However, Option B has capital cost of $-3,000,000.00 and total benefits of $6,300,000.00 generated an internal rate of return of nineteen percent. Additionally, to calculate the net present value it was necessary to include years' two and thre...
Create numeric cost estimates for each of the costs you listed. Calculate the net present value and return on investment. Include a break°even analysis. Assume a 10 percent discount rate and a five-year time horizon.
The formal cost-benefit analysis compares the monetary benefits and costs of government actions that would be aimed at improving public well being. Analysts approximate legal benefits using various estimating techniques. Measurement problems can also lead to some important cost-benefit categories that being ignored, in which the results can be subject to wide perception in biased debates.
Payback period is the length of time it takes to recover the initial cost of an investment. However, this method does not consider the cash inflows beyond the payback year and it does not consider the time value for money.
Hargraves has a total of 5 full time employees and 20 temporary employees (counselors, lifeguards, etc.) throughout the year. Mr. Davis proposes a budget that he sends to the Director of Parks and Recreation, ultimately, the town council has to approve. He stated that it can take up to six to seven months to be for the process of developing a budget and getting it approved. It is noted that some projections but not all are based off the previous year. As far as the finances that he has to budget, he has to consider salaries and the maintenance cost to keep the center functioning properly. Recently, Hargraves yearly compensates full time staff around $232,902.00 and part time staff $33,198.00. Maintenance cost can vary but for the budget sheet he presented to us we only decided to list a few: Phone- $6,400.00, Electricity- $28,000.00, Gas, Water & Sewer- $11,500.00, and Custodial Services- $23,813.00 when added all together it totals $69,713.00. As a key revenue stream, Hargraves Community Center along with other recreation facilities are funded by a non-profit organization called, “Friends of Chapel Hill Parks and Recreation.” The organization was created to beautify parks, greenways, recreational programs and facilities. Some of the key contributors for the organization are World Overcomers Christian Church, Dollar General, and Blue Cross and Blue Shield also anyone can donate. When it comes to determining what approach to use towards financial decisions. For short term the town may meet, discuss, and develop revenue streams or for long term take out bonds to fulfill costly decisions. The software used for the majority of the Parks and Recreation department of Chapel Hill is the “Rec Trac”. “Rec Trac” is an integrated parks and recreation management software that increases their efficiency and productivity, while also providing management with extensive reporting and
A continuous and appropriate financial management is highly essential to sustain and integrated a healthcare program. To build a sustainable integrated program cost calculation and pro formas are necessary to create monthly metrics, program accountability and fiscal sustainability this
In the result of successful ME in 1980s-1990s in the healthcare system, cost basis payment system changed to the prospective payment system (PPS), combined with state Medicare and statewide medical plans. According to this changes, following 4 types of cost reducing implications reflected in total cost containments in the system. 1. Total operating costs are reduced. 2. Labor cost, largest cost item, are reduced 3. Costs per unit produced are reduced 4. More service is provided for the same cost.
Opting for coverage by a registered health spending account (RHSA) allows employees to choose the benefits that most benefit them. Health insurance covers only a certain number of services, which may not help everyone. Health spending accounts also aid employers financially as they allow them to save money. Instead of needing to pay for typical health benefits, a certain amount of money can be distributed to employees by means of an RHSA, which employees can then use as they please.
Benefits under the plan are provided by a Trust fund. Plan expenses were $1,195,590. These expenses included $15,409 in administrative expenses and $1,180,181 in benefits paid to participants and beneficiaries. A total of 521 persons were participants in or beneficiaries of the plan at the end of the plan year, although not all of these persons had yet earned the right to receive benefits.