Question
mployee fitness facility- A new employee fitness facility and Health promotion program will cost $975,000. The proposed benefit is a .25% reduction in absenteeism. The
mployee fitness facility- A new employee fitness facility and Health promotion program will cost $975,000. The proposed benefit is a .25% reduction in absenteeism. The organization employees 2000 employees with an absenteeism rate of 7% or 280,000 lost man hours per year. Each lost man-hour is valued at $80 total cost including benefit and opportunity loss. Calculate the following: Basic ROI=Net benefit/Total Cost (use a 3 year model) Payback Period=Initial Investment/Cash Inflow per Period Net Present Value-NPV(rate,value1,[value2],...) Use 10% discount rate. Internal Rate of Return- IRR(values, [guess]) Note- Please show the formulas in cell to understand how the amount is calculated.
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