Neco 2025 Data Processing Question 10

A small business records inventory manually, taking 3 hours each day. They consider buying spreadsheet software that costs \(\text{₦}500,000\) with an annual maintenance fee of \(\text{₦}30,000\). The software reduces recording time to 2 hours per day. Employees are paid \(\text{₦}2,500\) per hour. The software also improves stock accuracy, reducing loss value by 12\% of monthly sales of \(\text{₦}500,000\). The business also depreciates the hardware needed for the software (cost \(\text{₦}120,000\)) straight‑line over 3 years. Assuming 30‑day months, calculate the net monthly benefit after accounting for labor savings, loss reduction, maintenance, and depreciation. Then state the total net benefit over 24 months and whether it exceeds the initial software cost by at least 20\%.