Question: Information on proposed training program: ------Cost of training program (from vendor): $100,000 ------Number of employees to be trained: 500 ------Estimated time to complete training: 4

Information on proposed training program:

------Cost of training program (from vendor): $100,000

------Number of employees to be trained: 500

------Estimated time to complete training: 4 hours

------Fully loaded labor rate for employees: $60/hour

------Overhead rate applied to all training-related costs: 20%

Estimated dollar value of benefits from training per year: $250,000

Time period for benefits to be realized: 5 years

Calculate the following (assume no discounting of future cash flows):

Total costs (including overhead)

Net benefit at end of 1st year

Net benefit for all 5 years

ROI (assuming 5 year window)

I have found an answer, but asking this to verify that I am equating properly.

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