BY Ltd is considering carrying out a major programme of staff training. The training scheme will cost

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BY Ltd is considering carrying out a major programme of staff training. The training scheme will cost £100,000 and will be paid for immediately. It is expected to produce additional cash flows as follows:image text in transcribed

The cost of capital to the company is 6%.
Required

(a) Evaluate the expenditure on the staff training scheme.

(b) Comment on other factors to be considered before taking up the training scheme.

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