A Proposed Engineering Improvement to a Process Is Expected to Reduce

Essay

A proposed engineering improvement to a process is expected to reduce accidents by a significant amount.The engineering improvement will represent an annual process cost of $5000,including interest and amortization of the original investment.The average direct Workers Compensation costs attributable to the type of accident that would be prevented is approximately $4000 per accident.Perform a cost benefit analysis to determine how much improvement in accident prevention would be necessary to justify this engineering improvement.Justify your analysis by stating any reasonable assumptions that are necessary.