what annual savings in shipping expenses must there be justify the purchase of the software?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 15E: Gina Ripley, president of Dearing Company, is considering the purchase of a computer-aided...
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6. A large electronic retailer is considering the purchase of software that will minimize shipping expenses in its supply chain network. This software, including installation and training would be a $10 million investment for the retailer. If the firm nominal interest is 15% per year and the life of the software is four years, what annual savings in shipping expenses must there be justify the purchase of the software? 

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