Cost Benefit Analysis Of Fit Life Gym

1441 WordsDec 8, 20166 Pages
Cost Benefit Analysis of Fit Life Gym: Implementing a Daycare Center Arathi Elango, Briana Basilone, Cristina Rodriguez & Mike Stafford HR Decision Making: Financial Decisions Professor Coffey ROI Project Due: 12/8/16 To: Senior Vice President of Human Resources The current goal and recommendation for our company Fit Life Gym, a physical enhancement and fitness center, is to obtain the necessary financial resources to provide our members with a safe and healthy journey to a better lifestyle, although children can sometimes make this nearly impossible. We hypothesize that with the implementation of a daycare center at Fit Life Gym, both members and employees with children will benefit by having the opportunity to visit the Fit Life facility daily without the worry of their children being cared for. Before the development and implementation of the Day Care Center, we must thoroughly analyze the cost and benefits of this risky investment. Direct Costs The direct cost for opening a daycare center in Fit Life Gym totals $10,500, which will cover all equipment costs. Some of the equipment that will be purchased for our daycare facility includes cribs, a changing cabinet, feeding and play tables, chairs, a bookshelf, rest mats, cubbies, and toys (Huntington, 2016). The cost of the equipment will be paid off using a straight-line depreciation of $2,100 each year for the first 5 years. Indirect Costs Fit Life Gym must also
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