Suppose Kyler Valley is deciding whether to purchase new accounting software. The payback for the $30,050 software package is five years, and the software's expected life is nine years. Kyler...

Suppose

Kyler

Valley is deciding whether to purchase new accounting software. The payback for the

$30,050

software package is

five

years, and the software's expected life is

nine

years.

Kyler

Valley's required rate of return for this type of project is

11.0%.

Assuming equal yearly cash flows, what are the expected annual net cash savings from the new software?

(1)	÷	(2)	=	Expected annual net cash inflow
	÷		=

(1)

Amount invested

Average amount invested

Expected useful life

Payback

Required rate of return

(2)

Amount invested

Average amount invested

Expected useful life

Payback

Required rate of return

Jun 10, 2022

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