Accusoft Systems is offering small business owners a software package that keeps track of many accounting functions from bank transactions to sales invoices. The site license will cost $43,000 to install and will require a fee of $1500 every 3 months. If your company can save $13,500 every quarter and have the security of managing its books in-house, how long will it take for you to recover the investment at an interest rate of 11% per quarter? The time taken to recover the investment is determined to be 6.75 quarters.
Accusoft Systems is offering small business owners a software package that keeps track of many accounting functions from bank transactions to sales invoices. The site license will cost $43,000 to install and will require a fee of $1500 every 3 months. If your company can save $13,500 every quarter and have the security of managing its books in-house, how long will it take for you to recover the investment at an interest rate of 11% per quarter? The time taken to recover the investment is determined to be 6.75 quarters.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Accusoft Systems is offering small business owners a software package that keeps track of many accounting functions from bank
transactions to sales invoices. The site license will cost $43,000 to install and will require a fee of $1500 every 3 months. If your
company can save $13,500 every quarter and have the security of managing its books in-house, how long will it take for you to
recover the investment at an interest rate of 11% per quarter?
The time taken to recover the investment is determined to be
6.75
quarters.
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