What are expected annual net cash savings from new software, Financial Accounting

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What are expected annual net cash savings from new software

Problem

Suppose Stenback Valley is deciding whether to purchase new accounting software. The payback for the $29,985 software package is five years, and the software's expected life is eight years. Stenback 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?

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Financial Accounting: What are expected annual net cash savings from new software

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Financial Accounting: What are expected annual net cash savings from new software

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