Orion Aerospace Ltd. manufactures highly customized components for satellites launched by the France and Germany. The company operates through eight…

Orion Aerospace Ltd. manufactures highly customized components for satellites launched by the France and Germany. The company operates through eight locations worldwide, including its central headquarters. To streamline the budgeting process and reduce escalating travel costs, the Finance Director, Ms. Ananya Rao, is considering the introduction of video conferencing as an alternative to physical meetings. In previous years, the company sent two executives from each location to the central headquarters twice a year for budget discussions. The average travel cost per executive (including airfare, accommodation, and meals) is 27,000 per trip. Under the proposed plan, Orion Aerospace Ltd. would install a video conferencing system at each location at a cost of 8,25,000 per location. In addition, the system would incur an average telephone transmission cost of 300 per hour, and it is estimated that 48 hours of transmission time per year would be required to complete the budgeting process. The company depreciates such equipment using the straight-line method over a useful life of five years, with no residual value. As an alternative, the company may opt to use locally rented video conferencing facilities, which are available at a cost of 1,500 per hour, plus 400 per hour towards average telephone charges. Additional Information: The company follows a policy of minimum annual cash savings of 10% of the existing travel cost before approving any new cost-saving technology. You are a Senior Officer in the Finance Department. Based on the above information, you are required to EVALUATE the proposal and advise Ms. Ananya Rao on whether Orion Aerospace Ltd. should implement video conferencing, and if so, WHICH alternative would be financially preferable.