Mansgement is concerned at the rate of occupational iniury arising from sprains and strains sustained by drivers exiting trucks on uneven ground in the loading yard. These trip, slip and fal incidents resutt in an average $55,000 per year in injury management and workers' compensation costs. Two options for mitigating the risk of inury have been identified. Option 1. Management could replace the two eviting 20 yoar-old thais with two Argoyy Fevghtiners. The Argosys saler access and egress design (swing out staircase) is expected to reduce the nik of trips and taks, and thus inee, arike and buck infuries by 95 isk The purchase coet for each new vehicie in expected to be: 594,000 plus 31,400 tarder costs. The compary could set the eabing trucks for 510,000 each. The new truds are abo more fuel efficient and expected to prosuce fud and marterance cost savings of 43,300 per yeat. the truck ages, with each year's insurance savings calcilated at 10 s. less tuan the previous yeac ikely to reduce the incidence of infury by 554 . The compary has a required rate of return of bW on cagtal nvestrere propect. (pert tgnore deprecicicen and tax). Required: 1. Identify the annual cashfows for each opton in the tuote bebow (hourd to the nearnt whole dolan- Pryback perive tar option 1 a Rurtedk pered for Copen 2 is Mansgement is concerned at the rate of occupational iniury arising from sprains and strains sustained by drivers exiting trucks on uneven ground in the loading yard. These trip, slip and fal incidents resutt in an average $55,000 per year in injury management and workers' compensation costs. Two options for mitigating the risk of inury have been identified. Option 1. Management could replace the two eviting 20 yoar-old thais with two Argoyy Fevghtiners. The Argosys saler access and egress design (swing out staircase) is expected to reduce the nik of trips and taks, and thus inee, arike and buck infuries by 95 isk The purchase coet for each new vehicie in expected to be: 594,000 plus 31,400 tarder costs. The compary could set the eabing trucks for 510,000 each. The new truds are abo more fuel efficient and expected to prosuce fud and marterance cost savings of 43,300 per yeat. the truck ages, with each year's insurance savings calcilated at 10 s. less tuan the previous yeac ikely to reduce the incidence of infury by 554 . The compary has a required rate of return of bW on cagtal nvestrere propect. (pert tgnore deprecicicen and tax). Required: 1. Identify the annual cashfows for each opton in the tuote bebow (hourd to the nearnt whole dolan- Pryback perive tar option 1 a Rurtedk pered for Copen 2 is
