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St. Lucia Foods wants to introduce a new computer system for its perishable products warehouse. The costs and benefits are as follows:
Year
Costs
Benefits
1
$33,00
$21,00
2
$34,600
$26,200
3
$36,300
$32,700
4
$38,100
$40,800
5
$40,000
$51,000
6
$42,000
$63,700
a. Given a discount rate of 8 percent (.08), perform present value analysis on the data for St. Lucia. (Use this formula
To find the multipliers for years 1 to 6.)
b. What is your recommendation for St. Lucia Foods?.
What is the probability of getting the first questions correct and miss the fourth with five possible answers to each question?
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