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Point-of-Sale System: We have two companies that can implement a point-of-sale system. Both with cost $200,000 to implement. Company A says we will receive the
Point-of-Sale System: We have two companies that can implement a point-of-sale system. Both with cost $200,000 to implement. Company A says we will receive the following returns on our investment: Year 1: $85,000; Year 2: $25,000; Year 3: $30,000; Years 4-10: $10,000. Company B says we will receive the following returns on our investment: Year 1: $30,000; Year 2: $25,000; Year 3: $85,000; Years 4-10: $10,000. Using the payback method, which company should we use and Why?
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