What is the risk of not doing this project

Assignment Help Managerial Accounting

Reference no: EM133502776

Case Scenario

One capital investment that State Insurance Company Limited might need to secure financing for in the coming fiscal year is the purchase of a new claims processing system. The estimated cost of the new system is $10 million, and the funds would be allocated as follows:

Hardware: $5 million
Software: $3 million
Training: $2 million
The new claims processing system would be a significant investment, but it would also bring a number of benefits to the insurance company. These benefits include:

Increased efficiency: The new system would be more efficient than the current system, which would lead to faster processing of claims and lower costs.
Improved accuracy: The new system would be more accurate than the current system, which would reduce the number of errors and the amount of time spent on rework.
Enhanced customer service: The new system would allow the insurance company to provide better customer service, which would lead to increased custom

Question: What is the risk of not doing this project?

Reference no: EM133502776

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