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b) An aggressive marketer of a new office copier has made its machine available for sale as well as lease. The idea of buying a
b) An aggressive marketer of a new office copier has made its machine available for sale as well as lease. The idea of buying a copying machine seems revolutionary, but less so when we examine our present costs, which come to $6,500 per year for lease plus per copy charges of 2 cents per page. If we own a machine, the cost of paper and maintenance is projected to be $1,500 per year. The new copier costs $10,000, installed, and is assumed to have an economic life of five years and a salvage value of $2,000. (assume 50,000 pages per year). i) What is the projected unadjusted rate of return if we install the copier? ii) If incremental taxes for the project are $1,000, what is the adjusted rate of return
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