If the following table were presented comparing the costs and
tangible benefits of two accounting information systems:
Costs and Tangible Benefits
System 1
System 2
Project completion time
1 year
1 year
Expected life of the system
5 years
5 years
One-time costs
$300,000
$140,000
Recurring costs incurred at beginning of years 1–5
$45,000
$55,000
Annual tangible benefits incurred at end of years 1–5
$170,000
$135,000
Based on this information, which system is likely to be
chosen? Discuss in 80–100 words.
