Using excel, prepare a cost benefit summary with a short narrative and calculation table for the following scenario. Calculate each tool listed below in the calculation table.

Employee Fitness Facility. A new employee fitness facility and health promotion program will cost $975,000. The proposed benefit is a .25% reduction in absenteeism. The organization employees 2000 employees with an absenteeism rate of 7% or 280,000 lost man hours per year. Each lost manhour is valued at $80 total cost including benefit and opportunity loss.

Tools:

Basic ROI=Net benefit/Total Cost (use a 3 year model).

Payback Period=Initial Investment/Cash Inflow per Period.

Net Present ValueNPV(rate,value1,[value2],...) Use 10% discount rate.

Internal Rate of Return IRR(values,....).