Alamo Foods of San Antonio wants to introduce a new computer system for its perishable products warehouse. The costs and benefits are as follows:

Year	Costs	Benefits
1	$35,000	$23,000
2	36,600	28,200
3	38,300	34,700
4	40,100	42,800
5	42,000	53,000
6	44,000	65,700

A) Given a discount rate of 9 percent (.09), perform present value analysis on the data for Alamo Foods. (Hint: Use the formula 1/ (1 + i)ⁿ to find the multipliers for years 1 to 6.)

b) What is your recommendation for Alamo Foods?