Flip Flop Company Is Considering Investing in Production-Management Software That

question 40

Multiple Choice

Flip Flop company is considering investing in production-management software that costs $630,000,has $64,000 residual value and should lead to cost savings of $2,350,000 per year for its five-year life.Calculate the average amount invested in the asset that should be used for calculating the accounting rate of return?

• A) $630,000
• B) $347,000
• C) $694,000
• D) $64,000

---

Definitions:

Sensory Neurons

Nerve cells responsible for converting external stimuli from the environment into internal electrical impulses for the brain.

Chemical Messenger

Biologically active molecules such as hormones and neurotransmitters that transmit signals across cells or throughout the body.

Acetylcholine

A neurotransmitter associated with various functions including muscle activation, heart rate, and the modulation of brain activity.

Dopamine

A neurotransmitter involved in many functions, including the reward system, motivation, pleasure, and motor control.