You are given the following financial data about a new system to be implemented at a company:
investment cost at n = 0: $10,000
investment cost at n = 1: $15,000
useful life: 10 years
salvage value (at the end of 11 years): $5,000
annual revenues:$12,000 per year
annual expenses:$4,000 per year
MARR: 10%
Note: The first revenues and expenses will occur at the end of year two.
Determine the conventional-payback period.
Determine the discounted-payback period.