Spruce Bank Is Planning to Automate Some of Its Back

question 81

Multiple Choice

Spruce Bank is planning to automate some of its back office functions and reduce operating costs. The installation of new computers and software will require an initial investment of $1,000,000. The savings generated because of reduced personnel cost is $200,000 per year. The bank uses an 8 percent rate of discount to evaluate cost saving projects which are expected to last 10 years.
-What must be the minimum annual cost savings in order to accept this project? Assume a five-year horizon and 8 percent discount rate.

• A)$200,000.
• B)$222,256.
• C)$250,456.
• D)$279,724.
• E)$500,913.

Understand the concept and legal implications of implied and express warranties in transactions.

Recognize the distinctions between the types of warranties and how they apply to different situations.

Understand the requirements for a seller to be liable under the implied warranty of merchantability.

Identify the legal requirements and limitations for disclaiming warranties.

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Definitions:

Operational Stability

The ability of an organization to maintain consistent operations and performance levels despite external or internal disruptions.

Presentation Software

A category of application software that allows users to create visual aids for presentations to enhance communication of ideas and information.

Production Software

Computer programs and digital tools used to control and manage the manufacturing process, from planning and design to actual production.

Desktop Publishing

The use of computer and software technology to create visual displays of ideas and information, typically for printed materials such as books, magazines, brochures, and advertisements.