Suppose that your company contracts its computer support to an outside company. The support company.

Suppose that your company contracts its computer support to an outside company. The support company charges 7 an hour, but offers two discount plans. With the Dynamic Discount Plan, you would pay a $2,000 annual fee, but then pay only $60 per hour of tech support. With the Comprehensive Coverage Program, you pay $6,000 annually, but are then billed just $17.50 per hour. Calculate the payback period for each of these discount plans. Which has the shorter payback period compared to just paying by the hour? (See Exercises 16 to 17 for a continuation of this exercise).

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