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A large beverage company wants to implement an ERP Solution to its 1 9 Operating Countries. In the first phase, it is keen to deploy

A large beverage company wants to implement an ERP Solution to its 19 Operating Countries. In the first phase, it is keen to deploy this solution to North American Supply Chain, Finance and Operations under a program called 'Umbrella'. There are 3 projects: Canada US and Mexico Roll-ins. Key benefits are reduction in operating cost, inventory, and people cost by 27% yielding a $1.5 Million recurring benefits before tax from Year-1. Investments for a full-fledged implementation are 10 Million USD with 5 Million in Yr-1,3 Million Yr-2, and 2 Million Yr-3. Company uses Straight line method of depreciation @ 20% year on year and evaluates the investment over 5 year time horizon. Applicable tax rate is 30%. The total cash inflow for Year-1 is:
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$2.05 Million
$1.5 Million
$1.05 Million
0

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