Cost-benefit analysis involves estimating the monetary values of initial and ongoing expenses. It has two parts: a costs analysis and a benefits analysis. Costs are estimated using survey methods and inferences about market behavior.
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Costs analysis
1. It involves monetary values of initial (non-
recurring) and on-going (recurring) expenses.
The analysis is divided into two major parts
(i.e.: costs analysis and benefits analysis).
Cost-benefit Analysis is estimated by using
survey methods and by drawing inferences
from market behavior
2. Plating Mass of silver No of Cost per Cost per load Cost per Cost per
thickness (in) (ounce) spheres per sphere ($) ($) day ($) year ($)
load (8 hours)
0.0007949 24.56 281 2.80 786.2 7862 2044120
Sensor Type Cost
Ultrasonic Sensor $700
Float-type Liquid Level Sensor $325
Total
= $650
Submersible pressure Sensor $595
Total
=$
3. Category Cost/Year
Office personnel $580,000
Research and development $300,000
Electricity $10,000
Public utilities $8,500
Office space $42,000
Furniture and office equipment $10,000
Test/prototype $35,000
Insurance $44,000
Damage due to uninsured losses $8,000
Income taxes $30,000
License/equivalent fees $5,500
Advertising $25,000
Total= $1,109,800
4. The operation one worker to operate and
monitor the machine at the cost of
$20/hour. It also requires 3 more workers to
transfer and set up the loads in the tank at
the cost of $20/hour.
The total cost of labor per day would be
$640. Consequently, the total cost of labor
per year would be $163,840.