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Health Care unit B is considering the purchase of a new computer system. It will cost $600,000.00. Your task is to find the payback period

Health Care unit B is considering the purchase of a new computer system. It will cost $600,000.00. Your task is to find the payback period for this building using the following assumptions:

  • Total cost of the system is $600,000.00
  • The useful life of the computer is 6 years
  • The computer will generate $20,000 of revenue after taxes
  • Direct operating cost associated with earning the revenue is $300,000
  • Depreciation expense per year is $60,000

******Be sure to show all calculations and how you arrive at the payback.

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