Should the firm undertake the training program

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Reference no: EM13934889

A company is planning to invest 60,000 in a personnel training program. The 60,000 outlay will be charged off as an expense by the firm this year (year 0). Years 1-10: $10,000 per year. Years 11-20: $22,000 per year. The company has estimated its cost of capital to be 12 percent. Assume that the entire 60,000 is paid at time 0 (the beginning of the project). Should the firm undertake the training program? Why or why not?

Reference no: EM13934889

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