Software Hub Is Deciding Whether to Purchase New Accounting Software

question 131

Multiple Choice

Software Hub is deciding whether to purchase new accounting software.The cost of the software package is $68,000,and its expected life is ten 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 no residual value.)

• A) $6,800
• B) $51,000
• C) $17,000
• D) $272,000

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Definitions:

Throbbing Headache

A type of headache characterized by a pulsating pain, often related to variations in intracranial pressure or blood flow.

Meyer Friedman

A physician known for describing the Type A behavior pattern, which is characterized by competitiveness, impatience, and a higher risk of heart disease.

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The state or process of becoming less tense, anxious, or stressed; often involves activities or techniques that promote this state.

Type A

A behavior pattern characterized by competitiveness, urgency, aggression, and an heightened stress response.