Project $1$ is a new WMS $($Warehouse Management System$)$ to replace Digby's aid WMS$.$ This new WMS will have much more functionality than their current WMS and should have a useful iffe for $25$ years. The new WMS will cost $$5$ million fully installed. Included in this price are autonomous guided vehiclos that will operate in the warehouse and a new high speed sorting machine to help process orders. Digby has a gocd credit rating and can borrow money at a fixed interest rate of $3\mathrm{.}5\%.$ It is estimated that the new WMS will enable Digby to better manage inventories resulting in less inventory, less obsolescance and higher worker productivity resulting in savings and increase revenues of $$500K$ per year for the first $10$ years then $$300K$ for the remaining $15$ years. The new system wil also bring some much needed accreditation to their accounting practicas which have been scrutinized by auditors.