develop a cost benefit analysis for DMC regarding fixing potholes and repairing other damages In its parking lots and driveways . report presenting g to CFO to allocate cost to their respective operation budget for the current fiscal year. what kind if analytical report would include reasonable estimation, appropriate analysis, supported arguments, clear and appealing presentation

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A 1 Two DMC Facility Management's employees survey damages in parking lots and driveways: $30/hr x 8 hrs x2x2 days $ 2 Contractor incurred material and machinery cost 3 Contractor incurred labor cost: 12-person crew working for 5 days (40 hours) at an hourly rate of $35 4 Total initial cash outlay 960 $ 16,500 $ 16,800 $ 34,260 5 6 Preventing employees' complaints and loss of productivity in Y1: $52/hr 100 hrs (down 20% thereafter each year) 7 Preventing lawsuits related to human injuries and vehicle damages: 1 lawsuit $5,000 $ 5,200 $ 5,000 8 Total increase in cost savings 9 Salvage value 10 Required rate of return 11 Useful life (years) of repaired parking lot and driveways 12 13 Depreciation schedule: $ 10,200 S 0.06 6 14 15 16 17 18 9 Depreciation basis-$ 34,260 Year (1) MACRS Depreciation Ending Rate Allowance Book Value 20.00% $ 6,852 $ 27,408 1 20 21 2 2 32.00% S 10,963 $16,445 3 19.20% $ 6,578 $ 9,867 4 11.52% $ 3,947 $ 5,920 3 5 11.52% $ 3,947 $ 1,973 4 6 5.76% $ 1,973 $ 5 (1) MACRS Modified Accelerated Cost Recovery System, which is the current U.S. tax depreciation system. 6 7 Annual cash flows: 8 Year 9 Initial investment 10 Increase in cost savings 1 Depreciation 2 Net income B Add back depreciation (because it is a non-cash accounting charge) Supplemental operating cash flow 5 Salvage value 5 Net cash flow Pensi 0 1 2 3 4 5 6 S (34,260) S 10,200 $ 6,852 $ 3,348 $ 6,852 10,963 S 10,200 $ 9,160 S 0 0 S 10,200 S 9,160 $ 9,160 $8,120 $ 7,080 $ 6,040 $5,000 10,963 6,578 3,947 3,947 1,973 (1,803) S 1,542 $ 3,133 $2,093 $ 3,027 3,947 6,578 3,947 8,120 $ 7,080 $ 6,040 $ 5,000 0 0 0 8,120 $ 7,080 $ 6,040 $ 5,000 1,973 A 1 Two DMC Facility Management's employees survey damages in parking lots and driveways: $30/hr x 8 hrs x2x2 days $ 2 Contractor incurred material and machinery cost 3 Contractor incurred labor cost: 12-person crew working for 5 days (40 hours) at an hourly rate of $35 4 Total initial cash outlay 960 $ 16,500 $ 16,800 $ 34,260 5 6 Preventing employees' complaints and loss of productivity in Y1: $52/hr 100 hrs (down 20% thereafter each year) 7 Preventing lawsuits related to human injuries and vehicle damages: 1 lawsuit $5,000 $ 5,200 $ 5,000 8 Total increase in cost savings 9 Salvage value 10 Required rate of return 11 Useful life (years) of repaired parking lot and driveways 12 13 Depreciation schedule: $ 10,200 S 0.06 6 14 15 16 17 18 9 Depreciation basis-$ 34,260 Year (1) MACRS Depreciation Ending Rate Allowance Book Value 20.00% $ 6,852 $ 27,408 1 20 21 2 2 32.00% S 10,963 $16,445 3 19.20% $ 6,578 $ 9,867 4 11.52% $ 3,947 $ 5,920 3 5 11.52% $ 3,947 $ 1,973 4 6 5.76% $ 1,973 $ 5 (1) MACRS Modified Accelerated Cost Recovery System, which is the current U.S. tax depreciation system. 6 7 Annual cash flows: 8 Year 9 Initial investment 10 Increase in cost savings 1 Depreciation 2 Net income B Add back depreciation (because it is a non-cash accounting charge) Supplemental operating cash flow 5 Salvage value 5 Net cash flow Pensi 0 1 2 3 4 5 6 S (34,260) S 10,200 $ 6,852 $ 3,348 $ 6,852 10,963 S 10,200 $ 9,160 S 0 0 S 10,200 S 9,160 $ 9,160 $8,120 $ 7,080 $ 6,040 $5,000 10,963 6,578 3,947 3,947 1,973 (1,803) S 1,542 $ 3,133 $2,093 $ 3,027 3,947 6,578 3,947 8,120 $ 7,080 $ 6,040 $ 5,000 0 0 0 8,120 $ 7,080 $ 6,040 $ 5,000 1,973

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