1. What are Michelle’s goals and objectives?
2. What alternatives does Michelle have regarding the PACMED system? What criteria should be used to evaluate the alternatives?
3. What are the relevant changes in costs and revenues that would have to be considered under each alternative?
4. Prepare a financial analysis to evaluate each of the alternatives identified in 1. Your analysis should include some sensitivity analysis around key assumptions.
5. Identify the qualitative factors that Michelle should consider when making her decision?
6. What would you recommend to Michelle?
7. Prepare an implementation plan to support your recommendation.

Michelle Janes, owner of a small pharmacy called The Medicine Chest was considering the purchase of a new computerized prescription order process and packaging system. The new system would allow the Medicine Chest to provide its customers with the additional service of prepackaging prescriptions into individual doses. Michelle realized that to continue to provide superior customer service she needed to find a way to provide new services to her clientele. However, the purchase of the new system would involve a considerable investment and Michelle was wondering whether the investment represents a reasonable direction for the future operations of the pharmacy. If she decided to proceed with the purchase of the new system, Michelle was also wondering how to determine a fair price for the service, or whether she should charge a fee at all.