Call us 24/7: + 1(925)399 0085

Get your paper done by an expert

No matter what kind of academic paper you need, it is simple and secure to hire an essay writer for a price you can afford at StudyAcer. Save more time for yourself.

WhatsApp + 1(925)399 0085
$ 10
free
  • bibliography
  • title page
  • revisions
per page
19 k happy customers
4.7 out of 5 satisfaction rate
27 writers active

cost benefit analysis 13

  1. The President of Tesla was really impressed by your analysis on market reactions and wants more (of course, he’ll pay you more!). He recently told his management team to do some research and find a fix for the autopilot system and analyze any option for a minimum five-year period.

The management team has found a company that can provide an improved computer. With this improvement, the management team believes the company’s revenues will increase in the first year by $25 million, by $7 million in the second year, then by $2 million per year in years three, four and five. The charge for the improved capability will cost Tesla $100 million (including license fee) in the first year, with a flat license and maintenance fee of $10 million in years two through five. The team accounted for inflation in their figures and is very confident of the estimated costs and revenue.

The President wants you to look at these figures and advise him on a decision. Assume that Tesla’s CFO can borrow money at a rate of 5% per year, and that rate holds over the life of this project. All costs come at the end of the year.

A. Based on the data above, make a recommendation for the President of Tesla. Should he make this investment under the conditions described?

B. Does your advice change if interest rates triple to 15% because the capital markets consider Tesla very risky? If your recommendation changed, briefly describe why it changed.

C. Are there any other costs the President should consider? You don’t have to estimate these, just comment. Did the team consider everything, or could there be more? (Not looking for numbers looking for our thinking) Look at ch 1 implicit costs.

Our guarantees

Study Acers provides students with tutoring and help them save time, and excel in their courses. Students LOVE us!No matter what kind of essay paper you need, it is simple and secure to hire an essay writer for a price you can afford at StudyAcers. Save more time for yourself. Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Our Homework Writing Disciplines

With a highly diverse team in almost all academic fields including:


Warning: Invalid argument supplied for foreach() in /home/acemfljg/public_html/wp-content/themes/essay-writing/footer.php on line 12