Peter and Angela, Doctors, rely heavily on a color laser printer to process their paperwork. Recently, the printer has not functioned well, and print jobs are not being processed. Management is considering updating the printer with a faster model.

If sold now, the current printer would have a salvage value of $3,000. If operated for the remainder of its useful life, the current printer would have zero salvage value. The new printer is expected to have zero salvage value after four years.

Instructions Prepare an analysis using the info. above to show whether the company should retain or replace the printer, and comment on the results of your analysis.