Inolla holds inventory of components to ensure that production is not disrupted. Components are imported from a number of other countries. Batteries are the most expensive part of the scooter and these are imported from country P. Lichun is considering investment in an enterprise resource planning (ERP) system to improve the efficiency of operations. She has approached a specialist ERP supplier which estimated an investment cost of $1m and projected net cost savings shown in Table 2. The specialist advised Lichun that the ERP system would need replacing after approximately six years. year net cost savings ($000) discount factors at 6% 1 300 0.94 2 400 0.89 3 450 0.84 4 500 0.79 5 500 0.75 6 500 0.71