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If the following table were presented comparing the costs and tangible benefits of two accounting information systems: Costs and Tangible Benefits System 1 System 2
If the following table were presented comparing the costs and tangible benefits of two accounting information systems: Costs and Tangible Benefits System 1 System 2 Project completion time 1 year 1 year Expected life of the system 5 years 5 years One-time costs $300,000 $140,000 Recurring costs incurred at beginning of years 15 $45,000 $55,000 Annual tangible benefits incurred at end of years 15 $170,000 $135,000 Based on this information, which system is likely to be chosen? Discuss in 80100 words.
If the following table were presented comparing the costs and tangible benefits of two accounting information systems:
Costs and Tangible Benefits
System 1
System 2
Project completion time
1 year
1 year
Expected life of the system
5 years
5 years
One-time costs
$300,000
$140,000
Recurring costs incurred at beginning of years 15
$45,000
$55,000
Annual tangible benefits incurred at end of years 15
$170,000
$135,000
Based on this information, which system is likely to be chosen? Discuss in 80100 words.
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