9/4/9-26

Carliss Hyde, Truell, Inc.'s vice president of marketing, has received a sales call from a vendor of customer relationship management (CRN) software. The vendor claim that the software and other data her company provides will enable Truell to target its advertising more appropriately and to identify new markets. The average improvement in sales volume from CRM = 10%, with no increase in advertising coats. The cost of the software and related services is $1, 798, 960. Truell depreciates software over five years. The company's current cash-basis income statement, based on sales of 79, 400 units, follows. Calculate the payback period to the useful life of the software if Truell, Inc, realize the reported average improvements. (Round answer to 2 decimal places, e.g. 15.25.) Compare the payback period to the useful life of the software. Is the payback period ? Calculate the accounting rate of return the software will generate. (Round answer to 2 decimal places, e.g. 15.25%.)