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You are looking to implement a new human resources policy and training program that focuses on training gym employees on how to deal with instances

You are looking to implement a new human resources policy and training program that focuses on training gym employees on how to deal with instances of sexual assault in gyms?


The new program will consist of putting small posters around the gyms with the words?


"If you see something, say something", training gym employees on what to do if somebody comes to them and says they feel like they are unsafe, and training employees on how to accommodate people by walking them out of the gyms if they feel it is necessary, etc?

 

What are some direct and indirect costs and benefits that would be associated with this training program? Provide some with supporting analysis?

 

The following cost-benefit analysis will be used to see the net present value of your program:

 

Year20222023202420252026 
Period01234 
       
Expense-$50,000     
Free Cash Flow$10,000$17,000$20,000$22,000 
Cost of Capital11%$9,010.46$13,802.02$14,630.89$14,501.41 
       
NPV$1,944.78     
NPV$1,945     
     Tax Rate25.00%
     Expected Return (Market) on Debt5.00%
     Debt (Market Value)5000
     Expected Return (Market) on Equity15.00%
     Equity9,000
     Weighted Average Cost of Capital (%)10.98%

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