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The Green Thumb Seed Company may purchase a new security system for its lab. Each alternative has a 10-year useful life. Which system should be

The Green Thumb Seed Company may purchase a new security system for its lab. Each alternative has a 10-year useful life. Which system should be purchased, based on payback analysis? How much better is the Payback (in years) for the best alternative?

Comparison of Alternative security system based on Costs, Annual Savings, and Salvage Values for I Spy and Gotcha Systems. Column 1: System Type. Column 2: Cost (in USD). Column 3: Annual Savings (in USD). Column 4: Salvage Value (in USD). Row 1: I Spy, $120,000, $20,000, $10,000. Row 2: Gotcha, $140,000, $22,000, $25,000.

Alternative

Cost

Annual Savings

Salvage Value

I Spy

$120,000

$20,000

$10,000

Gotcha

140,000

22,000

25,000

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