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1 . You have proposed a project that introduces engineering controls that, if implemented, will reduce PPE usage. Believe it or not, PPE costs add

1. You have proposed a project that introduces engineering controls that, if implemented, will reduce PPE usage. Believe it or not, PPE costs add up.
2. Determine the net present value and internal rate of return using the project values provided below. The video below should be helpful.
3. 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 $35,000 to implement.
It is expected to have a 5 year life.
Y1 it will reduce PPE costs by $8,250 but your gizmo is a tricky device. It requires regular maintenance. Y1 maintenance costs are expected to be $5,100
Y2 savings will be $16,000 and maintenance costs will be $3,300
Y3 savings will be $14,500 and maintenance costs will be $4,850
Y4 savings will be $7,200 and maintenance costs will be $3,000
Y5 savings will be $9,555 and maintenance costs will be $5,500
Assume a discount rate of 12%
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?

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