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can you help me : a printing service purchased a system 5 years ago automated printing at a cost of $ 6 0 , 0
can you help me :
a printing service purchased a system years ago
automated printing at a cost of $ At the time of purchase, estimated life
of the machine was years old and its salvage value was $ These
Estimates are still valid. The machine incurs operating costs
annual of $
A new, more efficient machine would reduce operating costs to $ per
year, but would require a new investment of $ The useful life of the new
machine is years old and its salvage value is $ A buyer
is offering $ for the current machine.
We also offer to rent the new machine for an annual amount of
$ However, you will have to assume maintenance costs of $ per year at the end
of year Rental payments must be made at the beginning of the year. In case of
rental, you can sell the current machine for $
Determine whether it is more economically advantageous to replace this machine,
keep it or rent one. Assume a TRAM of The tax rate
marginal of the company is Both machines are goods of the category
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