Referring

Referring to Exercise 1, suppose that after consulting with the chief financial officer at Berol, you are given the following additional information: variable costs are 0.08 , taxes are 40 percent, and the discount rate is 8 percent. Use Equation 10.2 in this chapter to recompute the total utility of the CAP test, the utility per selectee, and the utility per selectee in the first year. utility formula takes un. U=(N){i=1T[1/(1+i)]}(SDs)(1+V)(1TAX)(rx,sv)(Zx)Ct(1TAX) Where: the change in overall worth or utility after variable costs, N= the number of employees selected