Marine Industrial Coatings, Inc

Multiple Choice

Marine Industrial Coatings, Inc. is considering replacing its existing computer system with a new computer system. The new system can offer considerable savings in computer processing and inventory management costs. Information about the existing system and the new system follow:
-If Marine Industrial Coatings replaces the existing computer system with the new one,over the next 5 years operating income will:

A) increase by $2,500.
B) increase by $17,500.
C) decrease by $10,000.
D) increase by $5,000.