Mk. 225. Accusoft Systems is offering small business owners a software package that keeps track of many accounting functions from banktransactions to sales invoices. The site license will cost $43,000 to install and will require a fee of $1500 every 3 months. If yourcompany can save $13,500 every quarter and have the security of managing its books in-house, how long will it take for you torecover the investment at an interest rate of 11% per quarter?The time taken to recover the investment is determined to be6.75quarters.

Initial cost of software package (PV)$43,000Quarterly Fees of system$1,500.00Savings through…

Answered: Accusoft Systems is offering small…

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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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 $47,000 to install and will require a fee of $3500 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 9% per quarter? The time taken to recover the investment is determined to be.......quarters
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