If you implement a safety program that costs $400 to start and $15 a month to maintain with a policy saving of 10%, what would be the net difference in cost over a three-year period?

To determine the net difference in cost over a three-year period with the implementation of a safety program that starts with a cost of $400 and incurs a monthly maintenance fee of $15, we need to break down the total expenses and potential savings.

First, calculate the total costs associated with the safety program over three years. The initial startup cost of the program is $400. The monthly maintenance cost adds up over 36 months (3 years), which totals:

15 (monthly maintenance cost) x 36 (months) = $540.

Adding the initial cost to the maintenance cost gives:

$400 (startup) + $540 (maintenance) = $940 (total cost of the program over three years).

Next, we look at the savings from having this safety program. The policy saves 10%. If we assume the project this safety program is applied to has a certain budget (let’s denote it as B), the total savings generated from the program would be 10% of that budget over three years:

0.10 x B x 3 = 0.30B (total savings over three years).

Now we compare the savings to the costs incurred. For a net saving of $140, the equation would be:

Total Savings -