Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1 . You have proposed a project that introduces engineering controls that, if implemented, will reduce PPE usage. Believe it or not, PPE costs add
You have proposed a project that introduces engineering controls that, if implemented, will reduce PPE usage. Believe it or not, PPE costs add up
Determine the net present value and internal rate of return using the project values provided below. The video below should be helpful.
Submit your answer to this problem by submitting your Excel worksheet not a PDF I have to be able to see your formulas:
The project will cost $ to implement.
It is expected to have a year life.
Y it will reduce PPE costs by $ but your gizmo is a tricky device. It requires regular maintenance. Y maintenance costs are expected to be $
Y savings will be $ and maintenance costs will be $
Y savings will be $ and maintenance costs will be $
Y savings will be $ and maintenance costs will be $
Y savings will be $ and maintenance costs will be $
Assume a discount rate of
What is the NPV for this project? And should you invest in it Why or why not?
What is the IRR for this project? Is its IRR acceptable? Why or why not?
Based on the your calculations and knowledge that engineering controls are more reliable than PPE, and PPE dependence declines due to your gizmo's use, what would you recommend your employer do considering your cost and benefit analysis?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started