Undertake is moving checkpoint to reduce staffing at plant

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Reference no: EM132014563

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.

Based on calculations of NPV and IRR indicate whether you would accept the project or not and explain why.

Reference no: EM132014563

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