An e-commerce company is considering a technology upgrade that would significantly streamline its order fulfillment process. It
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Question:
An e-commerce company is considering a technology upgrade that would significantly streamline its order fulfillment process. It has an existing order fulfillment process that is mostly manual; while it works, it is inefficient. Purchasing the technology upgrade would require an up-front investment of $475,000. It would have an annual operating and maintenance cost of $21,500, but would result in labor savings of $125,000 per year. The company is considering an 8-year investment horizon; at the end of this horizon, the technology upgrade will have a $20,000 salvage value.
Assume that the company’s MARR is 11% and compute the present worth of the technology upgrade.
[Enter your answer as a whole number with no dollar signs or commas]
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