AFB Systems is considering a new marketing campaign that will require the addition of a new
computer programmer and new software. The programmer will occupy an office in AFB's current
building and will be paid 8,000 per month.
The software license costs 1,000 per month. The rent
for the building is 4,000 per month. AFB's computer system is always on, so running the new
software will not change the current monthly electric bill of 900. The incremental expenses for the
new marketing campaign are
A) 9,000 per month. B) 8,000 per month.
C) 13,900 per month. D) 13,000 per month.
Question 2
The discounted payback period takes the time value of money into account in that it uses
discounted free cash flows rather than actual undiscounted free cash flows in calculating the
payback period.
Indicate whether the statement is true or false
Gettysburg Campaign, 1863
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