Chapter 13. Topics: Systems proposal Determining hardware needs Determining software needs Decision to rent, lease, or buy Tangible and intangible costs and benefits Methods for selecting alternatives. Systems Proposal.
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– commitment to schedule, in-house training, technical assistance
Investment: $ 20,000
Amount Recovered in 2002: $ 7,312
Remaining Investment to be recovered: $12,668
Amount Recovered in 2003: $ 7,768
Remaining Investment to be recovered: $ 4,920
Part of 2004 Needed : 4,920/7352= 0.67
(Assuming that Amount Recovered in 2004 is $7352)
PBP = 1 + 1 + 0.67 = 2.67 YEARS
Without considering present value
Considering present value