Question: 1) Robomatic Electronic Plc. considers to purchasing an auto-insertion machine for $35,000. The expected useful life of the machine is 7 years with no terminal

1) Robomatic Electronic Plc. considers to
1) Robomatic Electronic Plc. considers to purchasing an auto-insertion machine for $35,000. The expected useful life of the machine is 7 years with no terminal scrap value. The following savings in operating costs is estimated: Year 1 2 3 4 5 6 7 Total Amount. S 13.000 10,500 9,500 8,500 7,500 6,500 5,500 61,000 Assuming that the rate of interest is 10% and the effects of income tax is ignored. (a) Calculate the payback period. (6%) (b) Calculate the net present value. (9%) (c) Calculate the accounting rate of return based on net initial investment. Assuming that straight-line depreciation is used. (6%) (d) Based on the results above, suggest if this is a good investment (4%)

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