Question 24 (12 points) Khalifa University is considering the purchase of a copying machine which it will make available to students at a per-copy charge. The copying machine has an initial cost of $7,500, an estimated useful life of five years, and an estimated salvage value of $500. The estimated annual revenue and expenses relating to operation of the machine are as follows: Revenue $8,000 Expenses other than depreciation $5,500 All revenue and expenses (other than depreciation) will be in cash. Depreciation calculation is by the straight-line method. a. How much will the purchase of the photocopy machine increase annual net income? $ (2 points) b. What is the annual net cash flow expected from this investment? $ (2 points) c. What is the Payback Period? years (2 points) d. What is the average rate of return (ARR) on this investment? _% (2 points) e. What is the net present value (NPV) of this investment at a discounted rate of 15%? (4 points)