2. Partially automated scanner that reads the piece-goods vouchers costs about Birr1,308,900 to make it operational. Operating costs are projected to be around Birr655,500 per year. The scanner
is expected to last for five years. The scanner's predicted net salvage value is Birr130,000,
according to estimates. The new automated system is estimated to save Birr 1,700,500 in labour
costs each year. Group 2
Calculate the net cash flows over the life of the scanner.
What is the time frame for recouping your investment?
If the firm's interest rate is 15% after taxes, what would be the discounted-payback period