Your Company Must Ensure the Safety of Its Work Force

question 142

Multiple Choice

Your company must ensure the safety of its work force.Two plans are being considered for the next 10 years: (1) Install a high electrified fence around the property at a cost of $100,000.Maintenance and electricity would then cost $5,000 per year over the 10-year life of the fence.(2) Hire security guards at a cost of $25,000 paid at the end of each year.Because the company plans to build new headquarters with a "state of the art" security system in 10 years,the plan will only be in effect until that time.Your company's required rate of return is 15 percent for average projects,and that rate is normally adjusted up or down by 2 percentage points for high- and low-risk projects.Plan 1 is considered to be of low risk because its costs can be predicted quite accurately.Plan B,on the other hand,is a high-risk project because of the difficulty of predicting wage rates.What is the proper PV of costs for the better project?

• A) −$104,266.20
• B) −$116,465.09
• C) −$123,293.02
• D) −$127,131.22
• E) −$135,656.09

Identify and describe the three degrees of distribution density.

Choose appropriate distribution strategies for different products and services.

Recognize the importance and implications of choosing marketing channels and intermediaries.

Grasp the concept and characteristics of administered vertical marketing systems.

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Definitions:

Voluntary Protection Programs

Cooperative initiatives between employers and government agencies to implement or enhance safety and health management systems at workplaces.

Health Insurance

An insurance policy that covers the cost of medical and surgical bills for the person insured.

Spousal Equivalents

Individuals who are not legally married but have a relationship akin to marriage, receiving similar benefits and recognitions in certain contexts.

Common Law Marriage

A legally recognized union that occurs when a couple lives together for a period of time and holds themselves out to friends, family, and the community as being married, but without ever going through a formal ceremony or obtaining a marriage license.