Question: The current software cost for the coding system in the health information management department is $10000 per year for licensing. Replacement and upgrades of harware

The current software cost for the coding system in the health information management department is $10000 per year for licensing. Replacement and upgrades of harware for the system cost $6000 per year. A new coding system with added features is being considered. The HIM department plans to reconfigure the work areas as part of this project with one time cost of $10000. The New software subscription is $8000 per year and maintenence fee for hardwar of $8000 per year. With the new coding system the department expects that it will increase reimbursement by at least $5000 per year by the end of the year one. In addition the new software system should improve productivity. What is the break even point? Please explain in detail. 1) 1 year, 2) 2 years, 3) 3 years, 4) 4 years. Please explain in detail. Thank you!!!!

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