contestada

Accelerated Finance is deciding whether to purchase new accounting software. The cost of the software package is $ 66,000​, 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.)

Respuesta :

Answer:  The expected annual net cash savings from the new​ software is $16500.

Explanation:

Given that,

Cost of the software package = $ 66,000

Expected life = 10 years

Investment Payback = 4 years

Salvage value = 0

Payback period = [tex]\frac{Initial\ Investment - Salvage\ Vaue}{Annual\ cash\ inflow}[/tex]

4 = [tex]\frac{66000 - 0}{Annual\ cash\ inflow}[/tex]

Annual cash inflow = [tex]\frac{66000}{4}[/tex]

= 16500

∴  The expected annual net cash savings from the new​ software is $16500.

Otras preguntas