Question: Parker Office Supplies management is considering replacing the companys outdated inventory-management soft ware. The cost of the new soft ware will be $168,000. Cost savings

Parker Office Supplies management is considering replacing the company’s outdated inventory-management soft ware. The cost of the new soft ware will be $168,000. Cost savings are expected to be $43,500 for each of the first three years and then drop to $36,875 for the following two years. What is the payback period for this project?

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Year CF Cumulative CF 0 168000 168000 1 435... View full answer

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