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 |
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| How is result of formula expressed? |
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| Advantages |
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| Disadvantages |
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| Notes |
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Net Present Value
| Formula for Calculating |
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| How is result of formula expressed? |
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| Advantages |
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| Disadvantages |
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| Notes |
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Internal Rate of Return
| Formula for Calculating |
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| How is result of formula expressed? |
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| Advantages |
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| Disadvantages |
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| Notes |
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Benefit to Cost Ratio
| Formula for Calculating |
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| How is result of formula expressed? |
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| Advantages? |
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| Disadvantages? |
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| Notes |
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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 |
