The following information regarding Greenwich Company is available: $1,512,000 $882,000 $252,000 Sales ...... Cost of sales... Operating expenses......... Operating Income.......... Average invested capital ... ROI... Return on sales....... Capital (Investment) turnover .. $3,780,000 B O Compute the answers for items A-D. 7. A - Operating Income 8. B - Return on Investment 9. C - Return on Sales 10. D-Capital (Investment) Turnover Port Pharmacy is considering the purchase of a copying machine, which it will make available to customers at a per-copy charge. The copying machine has an initial cost of $8,500, an estimated useful life of five years, and an estimated salvage value of $2,500. The estimated annual revenue and expenses relating to operation of the machine are as follows: Revenue... Expenses other than depreciation.... $9,000 $5,500 All revenue will be received in cash; expenses other than depreciation will be paid in cash. Depreciation will be computed by the straight-line method. Compute for this proposal the expected: 11. Annual increase in Port's net income: $ 12. Annual net cash flow: $ 13. Payback period: _years 14. Return on average investment: 15. Net present value (round to the nearest dollar) of the proposed investment, discounted at an annual rate of 15% (Tables show that the present value of $1 to be received in five periods, discounted at 15%, is 0.497 and that the present value of a five-year annuity of $1, discounted at 15%, is 3.352): $