Question: Purchase the SoftComm package, which will operate on the vendor's hardware: Cost $250,000 for a five-year license, payable half up front and half during the

Purchase the SoftComm package, which will operate on the vendor's hardware: Cost $250,000 for a five-year license, payable half up front and half during the first year of implementation. The maintenance contract, at $75,000 a year, includes all currently identified modifications to the software for the first three years. The clerk's hours will be cut by half, for a saving of $25,000 a year.

sales are expected to increase from the current $1million a year, by 10% per year each year (over each year's previous year's sales) after full implementation.

Assume a five-year life for the software.

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