What are heuristic functions and informed search strategies. Provide examples and present your written findings. You must write a 3-page essay in APA format. You must include 3 scholarly reviewed references that are DIRECTLY related to the subject. Graded Assignments are required to stimulate learning. Each assignment is due between Sunday evening by 11:50 p.m. EST. of the respective week. Provide documented evidence, in Moodle, of completion of the chosen exercise (i.e. provide answers to each of the stated questions). Detailed and significant scholarly answers will be allotted full point value. Incomplete, inaccurate, or inadequate answers will receive less than full credit depending on the answers provided. All submissions need to directed to the appropriate area within Moodle. Late submissions, hardcopy, or email submissions will not be accepted. Plagiarized submissions or the use of word substitution will result in a grade of zero.

Explanation:

South Tel Communications is considering the purchase of a new software management system. The system is called B-image, and it is expected to drastically reduce the amount of time that company technicians spend installing new software. South Tel's technicians currently spend 6,000 hours per year on installation which cost South Tel $25 per hour. The owners of the B-image system claim that their software can reduce time on task by at least 25%. The system requires an initial investment of $55,000 and an additional investment of$10,000 for technician training on the new system. Annual upgrades will cost the firm $15,000 per year. Because the investment is comprised of software, it can be fully expensed in the year of the expenditure (no depreciation). South Tel faces a 30% tax rate and uses a 9% cost of capital to evaluate projects of this type.

A. Assuming that South Tel has sufficient taxable income from other projects so that it can immediately expense the cost of the software, what are the free cash flows for the project for years zero through five?

Total (65,000)

Cash flow year 1 - 5

Saving on installations per year 450,000

Less: Annual upgrades ( 15,000)

Total 435,000

Less: Tax (30%) (130,500);

Total project free cash flow 304,500.answer