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The data processing centre of an insurance company has been troubled recently by the increasing incidence of repetitive strain injuries in the workplace. Health
The data processing centre of an insurance company has been troubled recently by the increasing incidence of repetitive strain injuries in the workplace. Health and safety consultants have recommended that management invest in upgrading computer desks and chairs at a cost of $500 000. They advise that this would reduce the number and severity of medical costs by $70 000 and that the productivity losses and sick leaves could be reduced by a further $80 000 per year. The furniture has a life of 8 years with a zero scrap value. The city uses a MARR of 9 percent. Should the center purchase the furniture? Use a benefit-cost analysis.
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