Question
A Vancouver software company is considering developing new software. The software will be good for 4 years until it will need updates. The software will
A Vancouver software company is considering developing new software. The software will be good for 4 years until it will need updates. The software will sell to lawyers in British Columbia. The estimated sales per year are 550 subscriptions. Cost of the subscription is $1,050. The research and development costs are $900,000. The research and development costs will be amortized (depreciated) straight-line to 0. Variable costs are minimal and we consider them 0. The company corporate tax rate is 30%. The project is associated with $150,000 additional salaries. Other additional fixed costs are $120,000. Calculate cash flow from assets this company for year 2. In your answer, please, provide just number with 2 decimals (if necessary). No dollar signs or commas. For example, one million fifty five dollars should be recorded as 1000055.
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