Terracotta Sdn. Bhd. is currently running its entire business operation using a manual system. The company...

  

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Terracotta Sdn. Bhd. is currently running its entire business operation using a manual system. The company plans to develop a computerized system to streamline the operation. It is estimated that the development cost is RM 150,000. The estimated operating costs for Year 1 to Year 5 are RM 20,000, RM 23,000, RM 30,000, RM23,000 and RM 25,000 respectively. The estimated benefits for Year 1 to Year 5 are RM 80,000, RM 75,000, RM 65,000, RM60,000 and RM 70,000 respectively. Prepare a cost-benefit table showing the cumulative costs and cumulative benefits for the project. (6 marks) Terracotta Sdn. Bhd. is currently running its entire business operation using a manual system. The company plans to develop a computerized system to streamline the operation. It is estimated that the development cost is RM 150,000. The estimated operating costs for Year 1 to Year 5 are RM 20,000, RM 23,000, RM 30,000, RM23,000 and RM 25,000 respectively. The estimated benefits for Year 1 to Year 5 are RM 80,000, RM 75,000, RM 65,000, RM60,000 and RM 70,000 respectively. Prepare a cost-benefit table showing the cumulative costs and cumulative benefits for the project. (6 marks)

Answer rating: 100% (QA)

Our solution is as follows Cumulative benefits 0 80000 80000 Year223000 19... View the full answer