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Options for formula: amnt invested, ave. amnt invested, expected useful life, payback, Required rate of return Suppose Root Valley is deciding whether to purchase new

Options for formula: amnt invested, ave. amnt invested, expected useful life, payback, Required rate of return

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Suppose Root Valley is deciding whether to purchase new accounting software. The payback for the $30, 050 software package is two years, and the software's expected life is seven years. Root Valley's required rate of return for this type of project is 13.0%. Assuming equal yearly cash flows, what are the expected annual net cash savings from the new software

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