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The new sales manager at the Coral House wishes to upgrade to a new event manage

ID: 2755258 • Letter: T

Question

The new sales manager at the Coral House wishes to upgrade to a new event management system to better manage and target corporate sales as well as weddings. Restaurant Software, Inc. (RSI) submitted a proposal costing $101,000 and Cuisine Inc’s proposal cost 100,000. Both companies have spent time with management and their accountants and have proposed the following cost benefits derived from the new system. The catering team believes the upgrade in software will yield more sales due t please answer it on excel or fiancee calculator

Explanation / Answer

Indiffernce Point (Rate of Return)ie. indifferent as to which vendor to chose

Year RSI Cuisine Inc. 0 -101000 -100000 1 18500 54500 2 37800 30000 3 39100 28000 4 51500 23100 IRR 14.50% 15.98%
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