Article 7 - companies have to deal with This gives the software companies a clear view of what they will need to spend to create growth and as

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Alysse Johnson Free Cash Profiles: The Software Makers Software companies are a great example of how expanding industries can continue to yield large amounts of free cash flow. Once software is originally made there are virtually no costs to recreate it over and over. Therefore there are large amounts of fixed costs compared to low amounts of variable costs causing there to be hardly any fluctuating costs that most other
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Unformatted text preview: companies have to deal with. This gives the software companies a clear view of what they will need to spend to create growth and as sales grow they will have relatively flat costs. With these factors put together the creation is a growth industry tantamount to a cash machine. http://www3.cfo.com/article/2011/10/cash-flow_free-cash-flow-profiles-for-computer-software?currpage=1...
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This note was uploaded on 11/02/2011 for the course REG 101 taught by Professor Lee during the Spring '11 term at Cardinal Stritch.

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