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A Company Intends to Install New Management Software for Its

Question 16

Multiple Choice

A company intends to install new management software for its warehouse. The software will cost $50 000 to buy and will cost an additional $150 000 to install and implement. It is anticipated that it will save the company $45 000 through reductions in staff and $65 000 in general inventory costs in the first year after installation. What is the benefit to the company in the first year if they choose to install the software?


A) $180 000
B) $90 000
C) $110 000
D) $45 000

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