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A small accounting firm is considering the purchase of a computer software package that would reduce the amount of time needed to prepare tax forms.

A small accounting firm is considering the purchase of a computer software package that would reduce the amount of time needed to prepare tax forms. The software costs $1,500. The firm estimates that it will save $750 per year if the software is used. a. What is the payback on the computer package? b. The firm may instead buy a more sophisticated computer package for $3,000. Assuming the same $750 annual savings is relevant, what is the payback on this package?

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