Gene’s printing Co. is considering buying a new scanner for $200,000. The scanner will save the company $60,000 per year in production costs for 7 years. After 7 years, the scanner will have a value of $50,000. Depreciation is calculated over 7 years using the straight line.

1.) Calculate the payback period.
2.) Should the company buy the press if its minimum ARR is 20%?
3.) Calculate the Net present value of the scanner using 15% interest.
4.) Should the company buy the scanner using NPV?