7-25. Two different copying machines are being considered in your company. The Mortar copier would be purchased

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7-25. Two different copying machines are being considered in your company. The Mortar copier would be purchased while the Xrocks copier would be leased. The company will replace any copier selected at this time after three years (i.e., the planning horizon for this evaluation is three years). The MACRS depreciation recovery period for office equipment is seven years. Assume an income tax rate of 40% and an after-tax MARR of 18% per year. Using the data in the table below, which machine would you recommend? (7.9) Mortar Xrocks Initial Investment $19,000 n/a Annual lease payment n/a $8,000 Annual operating expenses $800 $1,000 Market value after 3 years $8,000 n/a

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Engineering Economy

ISBN: 9780134870069

17th Edition

Authors: William Sullivan, Elin Wicks, C Koelling

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