(Appendix 2) Nadja Corporation is considering the purchase of one of two soft¬ ware packages that perform the same function. The application requires 5 hours of employee time when an employee first uses either package. The cost per employee hour is $35. Package #1 has a 70 percent learning curve; package #2 has a 90 percent learning curve.

a. What is the employee cost if the package is used 16 times?

b. Which package should Nadja Corporation purchase?