Question
Happy Corporation is considering a program that would allow present employees to work from home. Under this program some workers would work Tuesdays and Thursdays
Happy Corporation is considering a program that would allow present employees to work from home. Under this program some workers would work Tuesdays and Thursdays and others would work Mondays, Wednesdays, and Fridays one week and alternate the schedule the next week. Happy believes the corporation, under this new at home setup, could sell an existing office building for $8,000,000 after taxes. Additional benefits would be the energy, insurance, and property tax savings estimated to be $850,000 after tax per year for 20 years. Using a 6.5% cost of capital and ignoring depreciation and taxes (until covered in chapter 8), the net present value of this work modification project is ___________.
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