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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