Free Cost Benefit Analysis Case Study Example

In practice, cost-benefit analysis entails evaluating the total projected cost of a particular task relative to the anticipated benefits of the project. It is normally done to establish whether the proposed project is advantageous and worth venturing or rather executing. If the results of the comparative evaluation ascertain that the benefits realized in the aftermath outweigh the benefits incurred, then the organization or rather the team in question will make efforts to implement the project. In this case, a cost-benefit analysis of Gannon University recycling project will be undertaken.

Cost Analysis for the Trash

Considering that the cost of hauling trash from academic & housing buildings is $52,000/year means that the cost of the same per month is:
52,000/12= 4,330
This also means that Gannon University spends a total of $4,330 to haul trash of 186 cubic yard capacity using a total of 36 containers/month.
186/5.25= 36 containers

Cost Analysis for the Recyclables

On the contrary, Gannon University spends $7,000/year to haul recyclables. Total amount used per month is $7000/12= $583
The total number of containers used is: 62.5/2.13=30 containers

Choosing to recycle the all trash means using a total of:

186/2.13=88 Containers

In addition the total cost of recycling the entire trash is:

186/62.5. $7000=$20,830

Analysis

The anticipated total cost of recycling sums up to the total of $20,830. On the contrary, the cost of disposing of the trash using dumpsters sums up to $52,000. In addition, choosing to recycle will force the university to look for 52 more containers. Based on this, it is of utmost significance to denote that the benefits of recycling the trash outweigh the cost of disposing of the same using dumpsters, even though, additional containers will be needed. Gannon University will save a lot on this project, and they should, therefore, implement it. In addition to the monetary benefits acquired in selling the recycled goods the following are some benefits that will be realized by Gannon University.

Conserving the natural resources

Reduce Pollution Index Rate of the University
Reducing the amount of trash sent to incinerators
Reduces the cost of buying new products
Embracing clean environments