December
1999 QUESTION 5 Total Marks: 15 Marks |
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questions
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| (a) |
Why is it important to carry out a cost benefit analysis ?
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[1] |
| (b) |
List the three cost categories which one should take into account when performing a cost benefit analysis.
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[3] |
| (c) |
(i)Describe,using an example,the term break-even analysis .[2 marks ] (ii)Under what circumstances would a break-even analysis be used?[1mark ] (iii)List one drawback associated with break-even analysis.[1mark ]
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[4] |
| (d) |
(i)Describe,using an example,the term payback period .[2 marks ] (ii)Under what circumstances would a payback period be calculated?[1mark ] (iii)Give the equation for payback period when taxes are taken into consideration.[1mark ]
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[4] |
| (e) |
(i)Describe,using an example,the term marginal efficiency of investment .[2 marks ] (ii)Under what circumstances would the marginal efficiency of investment be calculated?[1mark ] |
3] |