HBR Transportation is considering whether to require its drivers to take a driver safety course. HBR has 100 drivers and the cost of the course is RM1,500 per driver, which includes the cost to HBR of its drivers not working. If all 100 drivers take the course now, the insurance company will reduce HBRs auto insurance premium by RM80,000 immediately. Further, the auto insurance premium will be reduced by RM45,000 in each of the next two years. The risk manager noted that the only benefit HBR can gain from the course is a reduction in insurance premium. According to HBRs chief financial officer, HBRs cost of capital is 7%, should HBR require its drivers to take the course?

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