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Inventory Management System of ANOSISYE Holding Company.
Item ID Item Description
TZS
01
Initial Cost for designing
1,000,000
02
Annual System Operation Costs
200,000
03
Annual Benefits due to increase in inventory turnover
553,000
04
Expected Life of the system before being phased out by advanced
technology
3 years
05
Cost of Capital of any project
5%
Required:
Assess the viability of the Inventory Management System. Should the company proceed developing
the system or not? Explain