Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. fairmont textile has a plant in which employees ha

Fairmont Textile has a plant in which employees have been having trouble with carpal tunnel...

80.2K

Verified Solution

Question

Finance

image

Fairmont Textile has a plant in which employees have been having trouble with carpal tunnel syndrome (CTS, an inflammation of the nerves that pass through the carpal tunnel, a tight space at the base of the palm), resulting from long-term repetitive activities, such as years of sewing. It seems as if 15 of the employees working in this facility developed signs of CTS over the last five years. DeepSouth, the company's insurance firm, has been increasing Fairmont's liability insurance steadily because of this problem. DeepSouth is willing to lower the insurance premiums to $16,000 a year (from the current $30,000 a year) for the next five years if Fairmont implements an acceptable CTS-prevention program that includes making the employees aware of CTS and how to reduce the chances of it developing. What would be the maximum amount that Fairmont should invest in the program to make it worthwhile? The firm's interest rate is 12% compounded annually. Click the icon to view the interest factors for discrete compounding when i = 12% per year. Assuming that premiums are paid at the end of each year, the maximum amount to invest is $ . (Round to the nearest dollar.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students