A layoff in the Payroll Department is expected to have an immediate restructuring charge (from severance package) of $12,000 and save money for the department according to the table immediately below. The firms weighted average cost of capital is 11 percent (which may be used as the discount rate for average-risk investments).

Year	Cash Flows
1	$3,375
2	$4,007
3	$5,750
4	$4,100

The Present Value of $1 Table (Table 3) tells us:

Period (n)	Present Value Factor at 11% Discount Rate
1	.901
2	.812
3	.731
4	.659

Formulas:

Net present value = Present value of cash inflows Present value of cash outflows

Benefit cost ratio = Present value of cash inflows Present value of cash outflows

A) What is the Net Present Value (NPV) and Benefit Cost Ratio (BCR) of investing in this restructuring charge?

B) Do these measures support the layoff decision with its associated restructuring charge? Why or why not?