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Assuming equal yearly cash flows what are the expected

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Using the payback and rate of return methods to make capital investment decisions

Suppose Smith Valley is deciding whether to purchase new accounting software. The payback period for the $28,575 software package is three years, and the software's expected life is eight years. Smith Valley's required rate of return is 14.0%.

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

Reference no: EM13571469

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