a) Calculate the Net Present Value for the terminals.

b) Calculate the payback period.

Alberto's Pizzeria is considering purchasing six (6) instore terminals that would allow customers to order their pizza digitally rather than queuing to order at the counter. The Manager is excited by this idea as it means lower wait times for customers and a reduction in wages paid. By installing this system, they would be able to make one of their casual front of house staff redundant. The details of these systems are as follows: $120,000 $2,000 $1,500 $2,000 Cost of acquiring the digital ordering systems Annual insurance costs for the terminals Annual software subscription for the terminals Fixed price maintenance contract for the terminals Annual front of house wages for one employee Expected useful life of the terminal Expected residual value at the end of the terminal's life Discount rate Term of loan to finance terminals $15,000 10 years $20,000 10% 7 years