What are your knowns for the euaw calculation

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Question - Your Area Director wants to purchase new Lockout/Tagout equipment for your maintenance personnel. The total purchase price is quoted by Grainger to be $11,843. It is estimated that the purchase of the new equipment will cut your lost work days by 31% because of improved awareness and lockout efficiency. It is estimated that this purchase will save you an estimated $6,573 per year in the costs associated with the lost work days. However, you have the following maintenance cost schedule.

Year

Maintenance

1

$200

2

$250

3

$300

4

$350

5

$400

6

$450

Required - What are your knowns for the EUAW calculation for this proposed purchase at an interest rate of 4%?

Reference no: EM133177964

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