Software Hub Is Deciding Whether to Purchase New Accounting Software

question 5

Multiple Choice

Software Hub is deciding whether to purchase new accounting software. The cost of the software package is $55,000, and its expected life is 10 years. The payback for this investment is four years. Assuming equal yearly cash flows, what are the expected annual net cash savings from the new software? (Assume the investment has zero salvage value.)

• A)$5,500
• B)$37,800
• C)$13,750
• D)$220,000

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Definitions:

Inherited

Something passed down from previous generations, whether it's traits, possessions, or status.

Conscientiousness

A personality trait characterized by organization, dependability, and a strong sense of duty.

Big Five Model

Five basic dimensions of personality to include neuroticism and frequently used to evaluate and assess people in the workplace.

Personality

The fusion of aspects or qualities that establish an individual's singular character.