Currently employed insurance adjuster seeks employers approval to obtain an insurance sales license from Insured Assurance, Inc. by completing an intensive sales licensing program over the next three months on a full-time basis. Assumptions:

Direct costs Tuition, fees, materials and two weekend conferences totaling $30,000

Indirect costs Lost earnings while participating in program totaling $46,000

Discount rate 7%

Expected increased productivity (from sales and improved service) upon completion of program

Period (Year) 1 - $24,000

Period (Year) 2 - $28,000

Period (Year) 3 - $34,000

Period (Year) 4 - $40,000

1. What is the Net Present Value, the Benefit Cost Ratio, and the Internal Rate of Return for the company sponsoring the professional in obtaining this license respectively?

2. Do the Net Present Value and the Benefit Cost Ratio support the decision to put the employee into this program? (answer in 1-2 sentences)