What is the payback on the computer package

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Reference no: EM131986615

A small accounting firm is considering the purchase of a computer software package that would greatly reduce the amount of time needed to prepare tax forms.

The software costs $1600 and this expense will be incurred immediately.

The firm estimates that it will save $525 at the end of each year beginning in one year for 9 consecutive years, and also save $1444 in year 10. What is the payback on the computer package?

Place your answer as an integer that stands for number of years.

Reference no: EM131986615

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