The Copy Inc. produces copy machines, which are sold at a unit price of € 6,000. The company has the opportunity to buy a new production line. For investment decisions the company implements a 13 % discount rate. The situation can be characterised by the following data:

The company’s marketing department estimates that the maximum capacity viable in each case could be marketable.
Is the replacement desirable according to the decision rule of the profit comparison method?

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Initial outlay Maintenance per period Economic life Variable Costs per unit produced Capacity per line Old production line 25,000,000 5,000,000 10 years 4,000 10,000 units New production line 30,000,000 500,000 10 years 3,900 11,000 units