Model One
Assumptions: (all US Dollars)
Incident reduction of slip and fall claims: 1
Average cost of claims: $13,000
Total cost of claims: $13,000
Administrative cost of claims: $10,000
Insurance rate reduction: $5,000
System write-off assumptions: 5
years
Tax assumption: 30%
Initial Safe-T-First investment: $50,000
Number of workers comp. claims reduced: 1
| CASH
FLOW: |
YEAR
0 |
YEAR
1 |
YEAR
2 |
YEAR
3 |
YEAR
4 |
YEAR
5 |
| INVESTMENT: |
(50) |
- |
- |
- |
- |
- |
| DEPRECIATION: |
- |
10 |
10 |
10 |
10 |
10 |
| INCOME/SAVINGS: |
- |
18 |
18 |
18 |
18 |
18 |
| TAX
@30%: |
- |
(5) |
(5) |
(5) |
(5) |
(5) |
|
| After
tax savings |
(50) |
23 |
23 |
23 |
23 |
23 |
| Payback
Period |
2.2
years |
|
|
|
|
|
Model Two
Assumptions: (all US Dollars)
Incident reduction of slip and fall claims: 2
Average cost of claims: $13,000
Total cost of claims: $26,000
Administrative cost of claims: $20,000
Insurance rate reduction: $5,000
System write-off assumptions: 5
years
Tax assumption: 30%
Initial Safe-T-First investment: $50,000
Number of workers comp. claims reduced: 2
| CASH
FLOW: |
YEAR
0 |
YEAR
1 |
YEAR
2 |
YEAR
3 |
YEAR
4 |
YEAR
5 |
| INVESTMENT: |
(50) |
- |
- |
- |
- |
- |
| DEPRECIATION: |
- |
10 |
10 |
10 |
10 |
10 |
| INCOME/SAVINGS: |
- |
41 |
41 |
41 |
41 |
41 |
| TAX
@30%: |
- |
(12) |
(12) |
(12) |
(12) |
(12) |
|
| After
tax savings |
(50) |
39 |
39 |
39 |
39 |
39 |
| Payback
Period |
1.3
years |
|
|
|
|
|
|
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