Emory University is considering replacing some Xerox copiers with faster copiers purchased from Brother. The administration is very concerned about the rising costs of operations during the last decade. (Click the icon to view the view information on the Xerox and Brother copiers.) (Click the icon to view the present value factor table.) Click the icon to view the present value annuity factor table.) Read the requirements Requirement 1. Using DCF techniques, compute the PV of all relevant cash flows, under both alternatives, for the 12-year period discounted at 12%. As a nonprofit university, Emory does not pay income taxes. Begin by completing the NPV using the total project approach. First, complete the "replace" option and then complete the "keep" option and calculate the difference in NPV between the alternatives. (Enter the present value factor to four decimal places, "X.XXXX" Round dollar amounts to the nearest whole number. Use a minus sign or parentheses for annual net cash outflows and for a negative net present value.) Present Value of Annual Cash Total Present Ordinary Annuity of $1 at 12 years, 12% Outflow Value A. Replace Net present value Present value of annuity of equal annual net cash outflows X per year = Less: Initial investment NPV of net cash flows To convert to Brother, two operators would have to be retrained. Required training and remodeling would cost $6,500. Emory's three Xerox machines were purchased for $17,000 each, 2 years ago. Their expected life was 14 years. Their resale value now is $2,500 each and will be zero in 12 more years. The total cost of the new Brother equipment will be $80,000; it will have zero disposal value in 12 years. The three Xerox operators are paid $16 an hour each. They usually work a 40-hour week. Machine breakdowns occur monthly on each machine, resulting in repair costs of $100 per month and overtime of 6 hours, at time-and-one-half, per machine per month, to complete the normal monthly workload. Toner, supplies, and so on, cost $115 a month for each Xerox copier. The Brother system will require only two regular operators, on a regular work week of 40 hours each, to do the same work. Rates are $18 an hour, and no overtime is expected. Toner, supplies, and so on, will cost a total of $1,500 annually. Maintenance and repairs are fully serviced by Brother for $525 annually. (Assume a 52-week year.) A Present Value of $1 Period 3% 4% 5% 6% 7% 8% 10% 12% 14% 16% 18% 20% 25% 1 .97099615 .9524 .9434 .9346 .9259 .9091 .8929 .8772 8621 8475 8333 8000 2 .9426 .9246 .9070 8900 .8734 8573 8264 7972 .7695 7432 .7182 6944 6400 3 .9151 8890 .8638 8396 .8163 .7938 .7513 7118 6750 6407 .6086 5787 5120 4 .88858548 .8227 .7921 .7629 .7350 .6830 6355 5921 5523 5158 4823 4096 5 8626 .8219 .7835 .7473 .7130 6806 6209 5674 5194 4761 4371 4019 3277 6 .8375 .7903 .7462 .7050 .6663 6302 5645 .5066 4556 4104 3704 3349 2621 7 .8131 .7599 .7107 .6651 .6227 5835 5132 4523 3996 3538 3139 2791 2097 8 7894 .7307 6768 .6274 .5820 5403 4665 4039 3506 3050 2660 2326 .1678 9 .7664 .7026 .6446 .5919 .5439 -5002 4241 3606 3075 2630 2255 .1938 1342 10 .7441 .6756 6139 5584 5083 4632 3855 3220 2697 2267 .1911 . 1615 1074 12 .7014 .6246 .5568 4970 4440 3971 3186 2567 2076 1685 .1372 1122 0687 15 .6419 .5553 4810 4173 3624 3152 2394 1827 1401 1079 0835 0649 .0352 18 .5874 4936 4155 3503 2959 2502 1799 1300 .0946 .0691 0508 .0376 .0180 20 .5537 4564 3769 3118 2584 2145 1486 .1037 0728 0514 0365 0261 0115 Present Value of Ordinary Annuity of $1 Period 3% 4% 5% 6% 7% 8% 10% 12% 14% 16% 18% 20% 25% 1 .9709 9615 9524 9434 9346 9259 .9091 .8929 8772 .8621 8475 8333 8000 2 1.9135 1.8861 1.8594 1.8334 1.8080 1.7833 1.7355 1.6901 1.6467 1.6052 1.5656 1.5278 1.4400 3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.4869 2.4018 2.3216 2.2459 2.1743 2.1065 1.9520 3.3121 3.1699 3.0373 2.9137 2.7982 2.6901 2.5887 2.3616 4 3.7171 3.6299 3.5460 3.4651 3.3872 5 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.7908 3.6048 3.4331 3.2743 3.1272 2.9906 2.6893 6 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.3553 4.1114 3.8887 3.6847 3.4976 3.3255 2.9514 7 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 4.8684 4.5638 4.2883 4.0386 3.8115 3.6046 3.1611 8 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.3349 4.9676 4.6389 4.3436 4.0776 3.8372 3.3289 9 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.7590 5.3282 4.9464 4.6065 4.3030 4.0310 3.4631 10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.1446 5.6502 5.2161 4.8332 4.4941 4.1925 3.5705 12 9.9540 9.3851 8.8633 8.3838 7.9427 7.5361 6.8137 6.1944 5.6603 5.1971 4.7932 4.4392 3.7251 8.5595 7.6061 6.8109 6.1422 5.5755 5.0916 4.6755 3.8593 15 11.9379 11.1184 10.3797 9.7122 9.1079 18 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719 8.2014 7.2497 6.4674 5.8178 5.2732 4.8122 3.9279 20 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181 8.5136 7.4694 6.6231 5.9288 5.3527 4.8696 3.9539