As CEO of AquaBoat Marine, Rhonda Wilson knows it is important to control costs and to respond quickly to changes in the highly competitive boat$-$building industry. When DMG Consulting proposes that AquaBoat Marine invest in an ERP system, she forms a team to evaluate the proposal: the plant engineer, the plant foreman, the systems specialist, the human resources director, the marketing director, and the management accountant. A month later, management accountant Matt Chumura reports that the team and DMG estimate that if AquaBoat Marine implements the ERP system, it will incur the following costs:

$($Click the icon to view AquaBoatanticipated project costs.$)$

The team estimates that the ERP system should provide several benefits:

$($Click the icon to view AquaBoatenticipated project benefits.$)$

Read the requirements.

Requirement $1.$ If the ERP installation succeeds, what is the dollar amount of the benefits?

If the ERP installation succeeds, the dollar amount of the benefits is $$

Requirement $2.$ Should AquaBoat Marine install the ERP system? Why or why not? Show your calculations.

Complete the table below to calculate the expected net benefits $($costs$)$ of the project. $($Use parentheses or a minus sign for net costs.$)$

Expected benefits $$

Expected costs $$

Net benefits $($costs$)$

Since the expected value of the benefits $$ the total costs, AquaBoat $$ undertake the project.

Requirement $3.$ Why did Wilson create a team to evaluate DMG$\text{'}$s proposal? Consider each plece of cost$-$benefit information that management accountant Chumura reported. Which person on the team is most likely to have contributed each item? $($Hint: Which team member is likely to have the most information about each cost or benefit?$)$

Wilson formed a team to evaluate the feasabilty of installing an ERP system for the following reasons. $($If an input field is not used in the table, leave the input field empty; do not select a label.$)$