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NEW QUESTION: 1
An administrator wishes to replace a legacy clinical software product as it has become a security risk.
The legacy product generates $10,000 in revenue a month. The new software product has an initial cost of $180,000 and a yearly maintenance of $2,000 after the first year. However, it will generate $15,000 in revenue per month and be more secure. How many years until there is a return on investment for this new package?
A. 0
B. 1
C. 2
D. 3
Answer: C
Explanation:
Return on investment= Net profit/ Investment where:
Profit for the first year is $60 000, second year=$ 120 000; third year=$ 180 000; and fourth year=$ 240 000 investment in first year=$ 180 000, by year 2 = $ 182 000; by year 3 = $ 184 000; and by year 4 = $186 000
Thus you will only get a return on the investment in 4 years' time.
References:
http://www.financeformulas.net/Return_on_lnvestment.html
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NEW QUESTION: 3
What is the remaining work duration of Active D?
A. 4.
B. 8.
C. 3.
D. 0
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