Price Mart Is Considering Outsourcing Its Billing Operations

question 23

Short Answer

Price Mart is considering outsourcing its billing operations.A consultant estimates that outsourcing should result in after-tax cash savings of $9,000 the first year,$15,000 for the next two years,and $18,000 for the next two years.Assuming a 12% discount rate,calculate the total present value of the cash flows.

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Definitions:

HR Planning

The ongoing process of systematic forecasting both the future demand for and supply of employees to ensure the organization has the right number of workers with the necessary skills.

Independent Variables

Variables that are manipulated or changed in an experiment to test their effect on the dependent variables.

Operational Time Periods

The specific intervals or durations during which business operations are executed, ranging from short-term daily operations to long-term strategic planning periods.

HR Demand Requirement

The estimation of the quantity and quality of human resources that an organization will need to meet its objectives.