Management is concerned at the rate of occupational injury arising from sprains and strains sustained by drivers exiting trucks on uneven ground in the loading yard. These trip, slip and fall incidents result in an average $55,000 per year in injury management and workers' compensation costs. Two options for mitigating the risk of injury have been identified. Option 1. Management could replace the two existing 20-year-old trucks with two Argosy Freightliners. The Argosy's safer access and egress design (swing out staircase) is expected to reduce the risk of trips and falls, and thus knee, ankle and back injuries by 95%. The purchase cost for each new vehicle is expected to be $94,000 per truck plus $1,400 transfer costs. The company could sell the existing trucks for $10,000 each. The new trucks are also more fuel efficient and expected to produce fuel and maintenance cost savings of $3,300 per year. The new trucks will also incur cheaper insurance and registration costs, with a $600 initial saving per truck in Year 1, although this saving will reduce as the truck ages, with each year's insurance savings calculated at 10% less than the previous year. Option 2. Alternatively, management could concrete the parking and unloading area to provide a level surface. This is expected to cost $65,000 and is likely to reduce the incidence of injury by 55%. The company has a required rate of return of 8% on capital investment projects. (Hint: Ignore depreciation and tax).