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1. Sell the copier or fix it up. Our cost of capital is 12% Option A We have estimated the following to Fix the photocopier.
1. Sell the copier or fix it up. Our cost of capital is 12% Option A We have estimated the following to Fix the photocopier. Year Cash Flow 0 1 2 3 4 5 -10,200 -13,800 -13,800 -13,800 -13,800 -13,800 Find the NPV 0 1 2 3 4 Option B Do we sell the photocopier and outsource the copying to a print shop? Year Cash Flow 9000 -19,800 -19,800 -19,800 -19,800 -19,800 Rehab cost of fixing the machine. Annual copying costs a. Find the NPV Received from the sale of the copier. Outsourcing printing costs I b. Which option do you chose
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