A Certain Company Estimates That Implementation of a Safety Glasses

Essay

A certain company estimates that implementation of a safety glasses policy will cost $8000 per year.Eye injuries are rare in this plant,but 2 have occurred over the past five years at a cost of $50,000 each including direct costs and estimated hidden intangible costs.It is believed that the proposed safety glasses policy will reduce the hazard of eye injuries by 75%.If interest and inflation are ignored,the $20,000 actual cost is assumed to be typical of eye injury costs.Perform a cost/benefit analysis to weigh the benefits of the proposed safety glasses policy against its expected costs.