The Director of the Health Information Management Department Has Calculated

Multiple Choice

The director of the health information management department has calculated the break-even point for purchase of a new transcription system to be 4 years. The director says that the new system will pay for itself in 4 years. Is this analysis correct?

A) Yes, because the break-even point does not consider the time it will take for a system to fully recover its investment costs.
B) Yes, because the break-even point calculates the difference between current system costs and new system costs.
C) No, because the break-even point does not consider the time it will take for a system to fully recover its investment costs.
D) No, because the break-even point does not calculate the difference between current system and new system costs.