A Company Intends to Install New Management Software for Its

question 16

Multiple Choice

A company intends to install new management software for its warehouse. The software will cost $50 000 to buy and will cost an additional $150 000 to install and implement. It is anticipated that it will save the company $45 000 through reductions in staff and $65 000 in general inventory costs in the first year after installation. What is the benefit to the company in the first year if they choose to install the software?

• A)$180 000
• B)$90 000
• C)$110 000
• D)$45 000