1 .		Your rapidly growing pharmaceutical company has 24 sales representatives, annual sales of $20 million and an extensive inventory of products that it markets to hospitals and health care facilities. The sales department has used glossy brochures, printed catalogs, and PowerPoint presentations to present information to customers about products but you would like to be able to create custom catalogs and PowerPoint presentations for customer sales calls that are tailored to different selling situations. You have found a sales software package called PowerSales that provides these capabilities and that can link automatically into the firm's enterprise resource planning (ERP) system to reflect changes in pricing, availability, and new products. The software also provides sales managers with forecasts and detailed reports of each sales call. The package vendor has suggested the following pricing option: Base software One-time installation charge $115,00 Annual license charge $75,000 Custom content (one-time charges) for the entire sales force Specific product promotions and product introduction $130,000 Product line overview presentations $65,000 Sales skills training $57,500 Your company plans to use the same content for two years. After determining the initial software configuration, the package vendor supplies a consultant to guide the customization process, working with the client to provide text graphics, animation, audio, and video content for the system. The cost of the consultant is $2000 per day. You have been told that it would take about 50 days of consulting time to customize and complete the package implementation. Your firm would not need to purchase any new hardware to run the package, but you would need an information systems specialist at an annual salary of $75,000 to spend 20 hours per month supporting the package. What are the total costs of using this package for the first year? For subsequent years? The package vendor claims that after implementing the package, its customers have increased sales by an average of 10% over two years. How much increase in sales revenue should your company anticipate if you implement this package? What additional information would be useful to guide your purchase decision?