Multiple Choice
Software Hub is deciding whether to purchase new accounting software. The cost of the software package is $55,000, and its expected life is 10 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 zero salvage value.)
A) $5,500
B) $37,800
C) $13,750
D) $220,000
Correct Answer:
Verified
Correct Answer:
Verified
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