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

---

Definitions:

Darwinian Evolution

The theory of biological evolution by natural selection proposed by Charles Darwin and Alfred Russel Wallace, emphasizing survival and reproduction of the fittest.

Genetic Variable

A factor in genetics that can be different in different organisms, affecting traits or outcomes in genetic research or inheritance.

Alfred Wallace

A British naturalist, explorer, and biologist who independently proposed the theory of evolution by natural selection.

Natural Selection

A process by which species adapt to their environment as individuals with advantageous traits survive and reproduce more successfully than others.