Company B Is Considering Implementing a New CRM Customer Relationship

question 4

Multiple Choice

Company B is considering implementing a new CRM Customer Relationship Management) system for its 10 UK facilities. The initial cost of the project will be £500,000 and the system is predicted to have a useful life of five years. The annual cost of maintaining the system will be £20,000, but it will increase revenues by £100,000 per year. What can we conclude about this potential project?

• A) Payback period will be 6.25 years
• B) If we consider only the information available, this would not be considered a worthwhile investment.
• C) Payback period will be 5 years.
• D) If we consider only the information available, this would be considered a worthwhile investment.
• E) NPV is positive.
• F) A and B only
• G) C, D, and E only

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