Health Care Budgeting

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Health Care Budgeting

ABC hospital needs a new billing system. The hospital is considering two software options: software A and software B. Software A costs $15,000 and will reduce operating cost by $5,000 per year; software B costs only $12,000 but will also reduce operating costs by $5,000 per year.

 Calculate payback period. Which software should be purchased according to payback method?

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