Ganesh is a sales director has deciding whether to implement a new computer-based contact management and sales processing system for 4 years. 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. This equipment initially requires a cost of approximately RM100,000. His annually financial information is shown below:

New computer equipment:

• 10 network-ready PCs with supporting software at RM2,450 each.
• 1 server at RM3,500.
• 3 printers at RM1,200 each.
• Cabling & installation at RM4,600.
• Sales support software at RM15,000.

Training costs:

• Computer introduction for 8 staffs at RM400 each.
• Keyboard skills for 8 staffs at RM400 each.
• Sales support system for 12 staffs at RM700 each.

Additional information:

• Lost time: 40-man days at RM200 each.
• Lost sales through disruption is RM20,000.
• Lost sales through inefficiency for first month is RM20,000.
• Tripling of mail shot capacity is RM40,000.
• Ability to sustain telesales campaigns is RM20,000.
• Improved efficiency and reliability of follow-up is RM50,000.
• Improved customer service and retention is RM30,000.
• Improved accuracy of customer information is RM10,000.
• More ability to manage sales effort is RM30,000.

The risk-free rate is 3.2 percent, risk premium is 2.8 percent and tax rate is 22 percent. Based on the information given, as a risk analyst, you are requested to advice the firm by constructing the Net Present Value (NPV).