Question: Consider the West Coast Gas proposed entry into ecommerce in P1-36B. Ma revises her estimates of the benefits from the new systems lower labour costs.

Consider the West Coast Gas proposed entry into ecommerce in P1-36B. Ma revises her estimates of the benefits from the new system’s lower labour costs. Ma now thinks the saving will be only $925,000.

Requirements

1. Compute the expected benefits of the web-based ordering system.

2. Would you recommend that West Coast Gas accept the proposal?

3. Before Ma makes a final decision, what other factors should be considered?

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