The data processing centre at a Swiss tax centre has been troubled recently by the increasing incidence of repetitive strain injuries in the workplace. Health and safety consultants have recommended to management that they invest in upgrading computer desks and chairs at a cost of 500 000 Swiss francs (CHF).
They advise that this would reduce the number and severity of medical costs by CHF 70 000 per year and tha t productivit y losse s and sick leave s could be reduce d by a further C HF 80 000 per year.
The furniture has a life of eight years with zero scrap value. The city uses a AIARR of 9%. Should the centre purchase the furniture? Use a benefit-cost analysis.