The following are system benefits for Interglobal Paper Company (from Problem 10):
a. Use the costs of Interglobal Paper’s proposed system from Problem 10 to determine the payback period. (Use the payback method.)
b. Graph the benefits versus the costs and indicate the payback period.
Reference:
Interglobal Paper Company has asked for your help in comparing its present computer system with a new one its board of directors would like to see implemented. The proposed system costs and present system costs are as follows:
a. Using break-even analysis, determine the year in which Interglobal Paper will break even.
b. Graph the costs and show the break-even point.
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