Question
The business where you work had a sales pitch from a company automating some document handling processes at a cost of R500 000 per year
The business where you work had a sales pitch from a company automating some document handling processes at a cost of R500 000 per year for the next 5 years. It is estimated that doing so will save the company R2 000 000 in todays terms. Assume a discount rate of 15% is applicable. Would it be worthwhile for the company to go for the automation process or retain its current practice. Choose the most correct option
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A. R1 676 078, it would not be worthwhile
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B. R1 676 078, it would be worthwhile
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C. R4500 000, it would be worthwhile
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D. R2500 000, it would not be worthwhile
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Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter
8th Canadian Edition
007133887X, 978-0071338875
