Please provide 1-2 paragraph answers to any two of the following four questions (15 points each). Please explain the concepts and do not simply provide language directly from class PPT’s or the text.
1. You have a safety and health project for which that you calculated the following financial metrics
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- bNet Present Value = $25,000
- bInternal Rate of Return = 10%
- Discount Rate used = 8%
- Discounted Payback Period = 3.5 years
- Current year organizational hurdle rate = 15%
- Define each term in the results i.e., what does Net Present Value mean…
2. The terms “direct and indirect costs” are used frequently by both financial and accounting professionals as well as by health and safety professionals. However, each group has a different meaning for the terms. Explain the meaning of the terms “direct and indirect costs” as used by both financial and H&S Professionals.
3. Define book value as it is used in a financial analysis. Compare and contrast (1) “depreciated book value” from a financial analysis with (2) the value of a new car immediately after you drive it off the dealer’s lot and the “blue book” value of the car a year later.
4. Your company’s incident rate is 25% higher than the industry average. Currently your direct cost of accidents is $500,000 and your safety budget is $200,000. In the past your manager has said that indirect costs are probably 3X greater than the direct costs for your organization. How much of a budget increase can you propose assuming that the additional funds can implement programs that would get your organization to an incident rate that is at the industry average?
5. Choose one of the semester projects presented by one of the other groups and explain how it impacts your current business (or one of your future employment/business plans). Include modifications required to fit your specifics and the costs vs benefits of your particular implementation.
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