Question
Lagenda Sdn. Bhd. plans to enhance its workers safety by enrolling them for training courses. The company will enjoy rebates in premium by the insurance
Lagenda Sdn. Bhd. plans to enhance its workers safety by enrolling them for training courses. The company will enjoy rebates in premium by the insurance company if the workers completed the training course (assuming that the only benefits of the training is the insurance premium rebates). The firm has a total of 200 workers and the cost of the training course for each is RM800. If all of the workers enrol in the course immediately, the company will enjoy a rebate of RM55,000 in the companys insurance premium this year and rebate of RM38,000 in each of the subsequent 3 years. The cost of capital is 8%. Should you recommend Lagenda Sdn Bhd to proceed with the plan? Why?
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