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Calculate the Pay-off Period for an IS project that has a $200,000 development cost in year 1 and annual $40,000 maintenance costs from year 2

  1. Calculate the Pay-off Period for an IS project that has a $200,000 development cost in year 1 and annual $40,000 maintenance costs from year 2 onwards. The benefits are expected to be $100,000 in Year 2 and growing $25,000 a year as adoption of the system increases. The discount rate is 0%.

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