A small accounting firm is considering the purchase of a computer software package that would greatly reduce
Fantastic news! We've Found the answer you've been seeking!
Question:
A small accounting firm is considering the purchase of a computer software package that would greatly reduce the amount of time needed to prepare tax forms. The software costs $2050 and this expense will be incurred immediately. The firm estimates that it will save $725 of cash flow at the end of each year beginning in one year for 7 consecutive years, and also save $1994 in year 8. What is the payback on the computer package?
Related Book For
Valuation The Art and Science of Corporate Investment Decisions
ISBN: 978-0133479522
3rd edition
Authors: Sheridan Titman, John D. Martin
Posted Date: