A small accounting firm is considering the purchase of a computer software package that would greatly...

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Finance

A small accounting firm is considering the purchase of acomputer software package that would greatly reduce the amount oftime needed to prepare tax forms. The software costs $2400 and thisexpense will be incurred immediately. The firm estimates that itwill save $650 at the end of each year beginning in one year for 7consecutive years, and also save $1788 in year 8. What is thepayback on the computer package?

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A small accounting firm is considering the purchase of acomputer software package that would greatly reduce the amount oftime needed to prepare tax forms. The software costs $2400 and thisexpense will be incurred immediately. The firm estimates that itwill save $650 at the end of each year beginning in one year for 7consecutive years, and also save $1788 in year 8. What is thepayback on the computer package?

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