A grocery distribution center is considering whetherto
Chapter , Problem 7-77(choose chapter or problem)
A grocery distribution center is considering whetherto invest in RFID or bar code technology to trackits inventory within the warehouse and truck load-ing operations. The useful life of the RFID and barcode devices is projected to be 5 years with minimalor zero salvagevalue. The bar codeinvestment costis$100,000andcan be expectedto save at least$50,000in product theft and lost items annually. The RFIDsystem is estimated to cost $200,000 and will save$30,000 the first year, with an increase of $15,000annually after the first year. For a 5% MARR, shouldthe managerinvest in the RFID system or the bar codesystem? Analyze incrementally using rate of return.
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