Question

Q11. The annual worth calculated for the first life cycle with i = 15% was obtained...

Q11. The annual worth calculated for the first life cycle with i = 15% was obtained as $-731. What will be the annual worth calculated for the second life cycle?

Q12. Which of the following is done during the detailed design stage in systems development?

Feasibility study

Conceptual plans development

Determining user needs

Acquisition of assets

Q15. Alex purchased two cars for $15,000 and $17,000. The life for both the cars is 5 years and the operating costs are $7,000 and $5,000, respectively. Determine the incremental cash flows for the given cars.

Extra investment = $+32,000 and annual incremental cash flow (5 years) = $-12,000

Extra investment = $-2,000 and annual incremental cash flow (5 years) = $+2,000

Extra investment = $-8,000 and annual incremental cash flow (5 years) = $-12,000

Extra investment = $400 and annual incremental cash flow (5 years) = $400

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