4.0. Cost-Benefit analysis
The Benefit-Cost analysis is an important technique that indicates the economic viability of an investment. From appendix 4, the Net Present Value over the period of the first five years is equal to $ 15, 533. 16. Therefore, Chic Paints ltd company is viable hence the need of going concern. According to (Intal & Linh, 2002) the major objectives of this method include: First, it is applied in the assessment of the merits of a particular undertaking. Secondly, it makes comparison between projects of the same industry effective. In this context, Chic Paints ltd’s Benefit-Cost analysis made it possible since it was utilized in the business decision assessment, used in public investment examinations for worthiness in extension to efficient natural resources usage or environmental conditions alteration with the aim of improving social welfare.
