The new system proposed by the consultant is basically a capital budget project. The cost of US $100000 is a known condition, but the future revenue of the system is difficult to budget. It is difficult to estimate the actual increase in cash flow that the improved system will bring. In this case, the system seems unlikely to be a valuable project because it does not save any labor, and it can solve very small management problems. This situation can easily be overestimated. Before accepting the consultant's ideas, management should ask for a detailed and fully supported estimate of the expected return (Turner, 1982). If the consultant also sells a similar system, there is likely to be a conflict of interest. So, the consultant's motivation may be to sell the business, not to improve Wilson's business crisis. It's common for technical sales people to come up with more systems than customers need in order to get high commission. Of course, there is another possibility (Turner, 1982). The consultant sincerely proposes a new system plan to the entrepreneur for the sake of the business crisis of the enterprise. The consultant also believes that the computer system can help the enterprise solve the unsolved problems. People in high-tech industries tend to use computer solutions, even if the cost of manual operations is lower. On the whole, the consultant's willingness to recommend is vague. The consultant did not explain the defects of the new system, nor did he state the service life and depreciation of the new system (Turner, 1982). Therefore, although the consultant has put forward some effective views that are helpful to the business crisis, the consultant is still biased.

I think the consultant has the responsibility to communicate information like taxes and depreciation. However, Wilson management also has obligations to ask appropriate questions about financing of the system, and related issue to the financing. The CFO or Finance Director should ask those pertinent questions.

Do you agree or disagree with this assessment? If so, do you feel the consultant is still biased?