A company intends to install new management software for its warehouse. The software will cost $ 55, 000 to buy and will cost an additional $ 151, 000 to install and implement. It is anticipated that it will save the company $ 39, 000 through reductions in staff and $ 63, 000 in general inventory costs in the first year after installation.
a. What is the benefit to the company in the first year if they choose to install the software?
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