Question: Consider the Sun Gas proposed entry into ecommerce in P1-31A. Smith revises her estimates of the benefits from the new systems lower labour costs. She
Consider the Sun Gas proposed entry into ecommerce in P1-31A. Smith revises her estimates of the benefits from the new system’s lower labour costs. She now thinks the savings will be only $933,000.
Requirements
1. Compute the expected benefits of the web-based ordering system.
2. Would you recommend that Sun Gas accept the proposal?
3. Before Smith makes a final decision, what other factors should she consider?
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Req 1 The expected value of the benefits is the labor cost savings of 933000 This is a downward revi... View full answer
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