Because the Navy may be forced to use larger numbers of marginally qualified recruits in the future and thus may have to expand its academic remedial training (ART) program, a study was conducted to compare the instructional and cost effectiveness of the standard classroom approach to ART with the use of a computer assisted instructional (CAI) system known as the Performance-related Enabling Skills Training (PREST) program. PREST, which focuses on improving functional reading and study skills, was used with a Control Data Corporation (CDC) PLATO computer system. A total of 152 recruits at Orlando, Florida, participated in the evaluation, with 75 receiving ART through classroom instruction and 77 through PREST. It was found that: (1) the two groups were equal in instructional benefits in terms of immediate and prolonged improvement; (2) the PREST configuration was less cost effective than the classroom approach in 1980; and (3) if civilian instructors were used and computer usage charges declined by 5% per year, PREST would become cost effective in Orlando in the late 1980's. It is recommended that the PREST program not be substituted for the current ART classroom approach, but that consideration be given to replacing the vocabulary and comprehension ART modules with a computer-based system using low-cost stand-alone microcomputers as the delivery devices. These and other recommendations, study methodology and results, and a 20-item bibliography are included. (ESR)