Accelerated Finance Is Deciding Whether to Purchase New Accounting Software

question 101

Multiple Choice

Accelerated Finance is deciding whether to purchase new accounting software.The cost of the software package is $59,000,and its expected life is ten years.The payback for this investment is four years.Assuming equal yearly cash inflows,what are the expected annual net cash savings from the new software? (Assume the investment has no residual value.)

• A) $5,900
• B) $44,250
• C) $14,750
• D) $236,000

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Definitions:

Coin

A flat, typically round piece of metal with an official stamp, used as money or in games.

99.7%

Represents the percentage of data that falls within three standard deviations of the mean in a normal distribution, according to the empirical rule.

Sampling Distribution

the probability distribution of a statistic obtained through a large number of samples drawn from a specific population.

Homeowners

Individuals who own their residence, including houses, apartments, or other dwelling types.