Costco is considering the addition of autonomous shopping ca…
Costco is considering the addition of autonomous shopping carts in their stores. The carts would follow customers as they shopped and would automatically scan items placed into the cart for touchless checkout when shopping is completed. The purchase of the initial shopping cart fleet is budgeted at $3.5 million, with estimated annual maintenance costs at $300,000 for the fleet. Annual operating costs are $200,000 for the fleet. The carts would remain in operation for 5 years, at which time they would be sold for $400,000. The Costco marketing team estimates an increase in annual revenue of $1.4 million directly attributed to this new transportation. b. If Costco uses a MARR of 10%, would you recommend for or against this project? Why?
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