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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