• Walmart is planning to implement a new automated inventory management system with the following financial projections:
  • Initial Investment: $500 million
  • Estimated Annual Savings in Inventory Costs: $200 million
  • Maintenance Costs: $50 million annually
  • Depreciation Expense: $50 million annually
  • Tax Rate: 24%

• Requirements:
  1. Calculate the annual net savings.
  2. Prepare a cost-benefit analysis over five years.
  3. Analyze the payback period for the investment.
  4. Discuss the strategic importance of the new system.
  5. Evaluate the potential risks and implementation challenges.