Question: Consider the Star Gas proposed entry into the Internet- based ordering system in P1- 30B. Smith revises her estimates of the benefits from the new

Consider the Star Gas proposed entry into the Internet- based ordering system in P1- 30B. Smith revises her estimates of the benefits from the new system’s lower labor costs. She now thinks the savings will be only $ 934,000.

Requirements
1. Compute the expected benefits of the Internet- based ordering system.
2. Would you recommend that Star Gas accept the proposal?
3. Before Smith makes a final decision, what other factors should she consider?

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