CIItal rate ot return 9) Flint System $67,000 residual value, and leads to cost savings of $1,850 average amount invested in the asset that should be used for calculating the accounting rate of return. A) $707,000 B) $640,000 C) $353,500 s is considering investing in production-management software that costs $640,000, has 000 per year over its five-year life. Calculate D) $67,000 6) When projecting future cash flows of an investment A) cash flows includes depreciation B) cash inflows and outflows are treated separately, rather than being netted togeth cash flows are projected by accounting personnel without considering input D)the initial investment is a significant cash outflow that is treated separately from all from other departments 2 Software Hub is deciding whether to purchase new accounting software. The cost of the software package is $68,000, and its expected life is ten years. The payback for this investment is four years. Assuming equal yearly cash flows, what are the expected annual net cash savings from the new software? (Assume the investment has no residual value.) A) $6,800 B) $51,000 C) $17,000 D) $272,000 8) Which capital budgeting method uses accrual accounting, rather than net cash flows, as a basis for calculations? A) payback BPaccounting rate of return C) net present value D) internal rate of return