You Have Submitted a Request to the Board of Directors

question 17

Essay

You have submitted a request to the board of directors to purchase a computer-based patient record system. The system is anticipated to save $45,000 in personnel operating costs each year for the next 3 years and will cost $110,000 to install. Operating and maintenance costs for the 3 years are estimated to be $5000 per year. The money to buy the equipment would come from an equipment fund, which is now earning 8%. Calculate the payback period for the investment.

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Definitions:

Objects

Material items that can be seen and touched, and are distinguishable from ideas or thoughts.

Piaget

A Swiss psychologist renowned for his theories on cognitive development in children, positing stages through which children's thinking evolves from simple to complex structures.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed (seen, heard, touched, smelled, or sensed in any way).

Practice

The repeated exercise or performance of an activity or skill so as to acquire or maintain proficiency in it.