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The owner of the Art stationery has a dilemma. She wants to offer .11 scanning services and must to decide between purchasing a Canon
The owner of the Art stationery has a dilemma. She wants to offer .11 scanning services and must to decide between purchasing a Canon scanner and a Samsung scanner. In either case, she figures that the cost of capital will be 20%. The relevant annual cash flows with each option are listed below. Answer the questions 11a), 11b) and 11c). 11a)Calculate the Net Present Value .for the Canon Scanner Year Samsung Canon 0 -25000 -26,000 1 10,800 12,000 23 4 2 9,360 8,640 12,096 11,232 10,368 10,368 .11b) Calculate the Net Present Value for the Samsung Scanner 11c) Using the Net Present Value as the criteria, which of the two scanners ?should the owner choose and why so 6 6 4
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