Referring to the Information Given, When Will Payback Occur? to Justify

question 53

Multiple Choice

Referring to the information given, when will payback occur? To justify the purchase of a new release of information tracking system, Health Information Management Services wants to calculate the new system's payback period. The cost to operate the current system is $25,000 per year. The proposed cost of the new system for the first year is $35,000 with continuing operating costs per year of $15,000. An increase of $10,000 per year in billing is anticipated with the new system because of .the addition of a billing component to the release of information tracking component. The data are summarized in the table below.

Cumulative difference in costs

• A) First year
• B) Second year
• C) Third year
• D) Fourth year

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Definitions:

Sleepwalking

A sleep disorder that involves getting up and walking around or performing other complex behaviors while in a state of sleep, typically occurring during deep sleep phases.

Prone

Having a natural inclination or tendency towards something, often used in the context of susceptibility to a condition or disease.

Accidents

Unplanned events that result in injury, damage, or loss.

Dream Content

The themes, imagery, and emotions experienced during dreams.