Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A small accounting firm is considering the purchase of a computer software package that would greatly reduce the amount of time needed to prepare tax
A small accounting firm is considering the purchase of a computer software package that would greatly reduce the amount of time needed to prepare tax forms. The software costs $2400 and this expense will be incurred immediately. The firm estimates that it will save $650 of cash flow at the end of each year beginning in one year for 6 consecutive years, and also save $1788 in year 7. What is the payback on the computer package? Years Because payback is typically defined as an integer (e.g. 3 years and not as 3.74 years), place your answer as an integer. CHECK
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started