Dilmar's Safety First Corporation is evaluating the inclusion of a new safety id screening device. As the company risk manager you have to evaluate whether or not the new device is a good investment. Conduct a Net Present Value analysis. Determine whether or not the NPV analysis alone justifies the purchase of the new screening device.

The particulars are: The screening device will cost 300,000. The maintenance will be 4,000 per year. The screening device needs special swipe cards that will cost 6,000 per year. It is expected that the insurance premium savings will be 40,000 per year. Loss reduction is expected to amount to 80,000 per year. The screening device has a seven year useful life with zero salvage value. The company is in the 35% tax bracket. Gerardo has determined that the...