Question: A sales director is deciding whether to implement a new computer - based contact management and sales processing system. His department has only a few
A sales director is deciding whether to implement a new computerbased contact management and sales processing system. His department has only a few computers, and his salespeople are not computer literate. He is aware that computerized sales forces are able to contact more customers and give a higher quality of reliability and service to those customers. They are more able to meet commitments, and can work more efficiently with fulfillment and delivery staff. His financial costbenefit analysis is shown below:
networkready PCs with supporting software @$ each
server @ $
printers @ $ each
Cabling & Installation @ $
Sales Support Software @ $
Training costs per annual:
Computer introduction people @ $ each
Keyboard skills people @ $ each
Sales Support System people @ $ each
The benefits of the new yor are pe people Fion to source: iporease sales and low's inventory levels. Sales are expert potic co come som to in the list year of the system's operation and will grow at a rate of each year thereafter. Savings from lower inventory levels are expected to be $ per year for each year of the project's life. Assuming a threeyear useful life after the project is developed. i Compute the present value PV of the cash flows, il
NPViii ROI and iv BEP using, using an interest rate of
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