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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.
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