A large construction company is going to run an experiment at one of its projects to see how cost effective it will be to record on-site materials ith small radio frequency identification (RFID) chips. The project manager will instantly track any material taken from the site store and used in construction. The project manager expects to save the cost of staffing 3 site storage supervisors, which amounts to $100,000 per year. How much can the manager afford to spend on its RFID investment if the system has a life of 10 years and no residual value? The retailer's interest rate is 15% per year.
