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 1050 subscriptions. Cost of the subscription is $550. The research and development costs are $750.000. The research and development costs will be amortized (depreciated) straight-line to 0. Variable costs are $100. The company corporate tax rate is 25%. The project is associated with $110,000 additional salarios.
a. Other additional fixed costs are $110.000.
b. Calculate cash flow from assets this company for vest?
c. In your answer, please, provide just number with 2 decimals (if necessary). No dollar signs or commas.
d. For example. one million fry five dollars should be recorded as 1000055
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