Suppose That New Computer Software for Accounting and Analysis at a Business

question 193

Multiple Choice

Suppose that new computer software for accounting and analysis at a business has a useful life of only one year and costs $200,000 before it needs to be upgraded to a new version.The revenue generated by this software is expected to be $250,000.The expected rate of return from this new computer software is

• A)11 percent.
• B)20 percent.
• C)25 percent.
• D)80 percent.

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Definitions:

Technological Change

Innovations and improvements in technology that enhance productivity, efficiency, and the overall quality of goods and services.

Income Inequality

Describes the uneven distribution of income among individuals in a society, where some earn significantly more than others.

Redistribution Programs

Government policies or initiatives designed to transfer income or wealth from certain groups of individuals to others, often aiming at reducing economic inequalities.

In-kind Transfers

Non-cash goods and services provided by governments or organizations to individuals, such as food assistance or housing.