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An engineering department is considering purchase of an advanced computational fluid dynamics software system to enhance productivity. The initial cost of the software is $60,000

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An engineering department is considering purchase of an advanced computational fluid dynamics software system to enhance productivity. The initial cost of the software is $60,000 but is expected to result in efficiency savings of $25,000 the first year, with this amount decreasing by $5000 per year thereafter. Assuming that MARR is 10% what is the payback period for the software

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