Alamo Foods of San Antonio wants to introduce a new computer system for its perishable products warehouse. The costs and benefits are as follows:

a. Given a discount rate of 8 percent (.08), perform present value analysis on the data for Alamo Foods. (Hint: Use this formula:
1 111 1 i 2n to find the multipliers for years 1 to 6.)

b. What is your recommendation for Alamo Foods?

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Year Costs Benefits - $33,000 $21,000 23456 34,600 26,200 36,300 32,700 38,100 40,800 40,000 51,000 42,000 63,700