Question: please dont answer my by excel .. would be better if use your PC to answer ,, as well as provide the formula Question 3
Question 3 (25 Marks) (a) Suppose Advance Tech Bhd. is considering spending RM10 million this year to improve safety of its manufacturing facilities. It estimates that the annual frequency of accidents per employee will fall from 5% to 4% and that the average severity of accidents will fall from RM20,000 to RM15,000 per year as a result of the renovation in each of the next 9 years. Assuming a constant workforce of 5,000 employees over this time, should the firm spend the RM15million if the required return is 7%? (13 marks)
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