Moving checkpoint to reduce staffing at plant

Assignment Help Financial Management

Reference no: EM132014561

A project we are just beginning to undertake is moving a checkpoint to reduce staffing at a plant by 9 full time employees. The initial cost thus year to complete the project is projected to be $5.3million. This cost is offset by the total savings per year of approximately $1.2million (costs of 9 FTE with benefits) every year going forward for the life of the plant. The plant is currently slated to operate through 2032. There will be no exit costs for it will remain after the life of the plant plus decommissioning and the cost to raise the entire footprint is a separate fund that us fully funded.

Indicate whether you would accept the project or not and explain why.

Reference no: EM132014561

Questions Cloud

How would each of these accounts look after : How would each of these accounts look after:

When considering disability income insurance : When considering disability income insurance, what length of waiting period and duration of benefits should the Brocks consider?

Undertake is moving checkpoint to reduce staffing at plant : A project we are just beginning to undertake is moving a checkpoint to reduce staffing at a plant by 9 full time employees.

What is wing air weighted average cost of capital : Wing Air, Inc. has a target capital structure of 65% percent common stock. What is Wing Air's weighted average cost of capital?

Moving checkpoint to reduce staffing at plant : A project we are just beginning to undertake is moving a checkpoint to reduce staffing at a plant by 9 full time employees.

Warner cost of not taking the cash discount : What is Mr. Warner's cost of not taking the cash discount?

How much is the present value of stock : Assuming a required return of 10%, how much is the present value of stock?

Four risk categories used to compute risk-weighted assets : Suppose that the bank has a quarter of its assets in each of the four risk categories used to compute risk-weighted assets.

Bank asset grow over the next year for ratio not to fall : By what percentage can the bank’s asset grow over the next year for the ratio not to fall below this level?

User Account

All Pages