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Pottier Transportation is trying to decide whether to require its drivers to take a driver safety course. The firm has 100 drivers and the cost

Pottier Transportation is trying to decide whether to require its drivers to take a driver safety course. The firm has 100 drivers and the cost of the course per driver is $1500, which includes the cost to the firm of people not working. If all 100 drivers take the course immediately, the insurance company will reduce the firm's auto insurance premium by $80000 immediately, and by $45000 in each of the next two years. In the managers' view, the only benefit of the course is a reduction in insurance premiums. The firm's chief financial officer says that the appropriate cost of capital is 7%. 



What is the net present value for the course?

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