Make sure you show the formula and the answer. You must get the answer correct-n

Question

Make sure you show the formula and the answer. You must get the answer correct-no partial credit will be given. Make sure you round to the nearest whole number.
Information for assignment
Investment for a scanner- $30,000
Cash in for scanner-$10,000 per year
Straight line depreciation for scanner- 2,000 per year
Operating costs for scanner- $2500
Interest rate for scanner 7%

Investment for a copier- $10,000
Cash in for copier-$2500 per year
Straight line depreciation for copier- 500 per year
Operating costs for copier- $200.00

You will use a five year time period.
Question
What is the payback period for the scanner? Round to the nearest whole number.
What is the accounting rate of return for the scanner? Round to the nearest whole number
What is the return on investment for the scanner? Round to the nearest whole number.
What is the payback period for the copier? Round to the nearest whole number.
What is the accounting rate of return for the copier? Round to the nearest whole number
What is the return on investment for the copier? Round to the nearest whole number.
What is the Net Present Value for the Scanner for five years? Round to the nearest whole number.
What is cost benefit analysis and why is it useful? Make sure you show the formula and the answer. You must get the answer correct-no partial credit will be given. Make sure you round to the nearest whole number.
Information for assignment
Investment for a scanner- $30,000
Cash in for scanner-$10,000 per year
Straight line depreciation for scanner- 2,000 per year
Operating costs for scanner- $2500
Interest rate for scanner 7%

Investment for a copier- $10,000
Cash in for copier-$2500 per year
Straight line depreciation for copier- 500 per year
Operating costs for copier- $200.00

You will use a five year time period.
Question
What is the payback period for the scanner? Round to the nearest whole number.
What is the accounting rate of return for the scanner? Round to the nearest whole number
What is the return on investment for the scanner? Round to the nearest whole number.
What is the payback period for the copier? Round to the nearest whole number.
What is the accounting rate of return for the copier? Round to the nearest whole number
What is the return on investment for the copier? Round to the nearest whole number.
What is the Net Present Value for the Scanner for five years? Round to the nearest whole number.
What is cost benefit analysis and why is it useful? Make sure you show the formula and the answer. You must get the answer correct-no partial credit will be given. Make sure you round to the nearest whole number.
Information for assignment
Investment for a scanner- $30,000
Cash in for scanner-$10,000 per year
Straight line depreciation for scanner- 2,000 per year
Operating costs for scanner- $2500
Interest rate for scanner 7%

Investment for a copier- $10,000
Cash in for copier-$2500 per year
Straight line depreciation for copier- 500 per year
Operating costs for copier- $200.00

You will use a five year time period.
Question
What is the payback period for the scanner? Round to the nearest whole number.
What is the accounting rate of return for the scanner? Round to the nearest whole number
What is the return on investment for the scanner? Round to the nearest whole number.
What is the payback period for the copier? Round to the nearest whole number.
What is the accounting rate of return for the copier? Round to the nearest whole number
What is the return on investment for the copier? Round to the nearest whole number.
What is the Net Present Value for the Scanner for five years? Round to the nearest whole number.
What is cost benefit analysis and why is it useful?

Explanation / Answer

1.Pay back period for scanner= 30000/(10,000-2000-2500-7%*10,000)

Pay back period for scanner= 30000/(4800)= 5 years

2.accounting rate of return= 4800/30000= 16% p.a

3. return on investment= accounting rate of return= 16%

4.payback period for copier= (10,000)/(2500-500-200)= 10,000/(1800)= 5.6 years

5.accounting rate of return= 1800/10,000= 18%

6. return on investment= accounting rate of return= 18%

NPV for Scanner= 4800/(1+7%)^1+ 4800/(1+7%)^2 + 4800/(1+7%)^3+ 4800/(1+7%)^4+4800/(1+7%)^5= 19,680

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