Planning to purchase an enterprise resource planning system

Reference no: EM13700910

The engineering team at Manuel’s Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs $380,000 initially and is expected to increase revenue $125,000 per year every year. The software and installation from Vendor B costs $280,000 and is expected to increase revenue $95,000 per year. Manuel’s uses a 4-year planning horizon and a 10 % per year MARR. What is the discounted payback period of each investment?

Reference no: EM13700910

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