Question
Please use excel and show equations and answers. Thanks! A company is considering whether to buy a regular or color printer for the office. The
Please use excel and show equations and answers. Thanks!
A company is considering whether to buy a regular or color printer for the office. The regular printer costs $15,000 and works for 5 years with an annual maintenance cost of $1000. The color printer costs $30,000, also works for 5 years, and require $3,500 in annual maintenance costs. The color printer increases revenues by $8,500 annually. Depreciation is straight-line for both printers with both printers expected to have zero salvage values at the end of their lifetime. The company pays 25% in taxes and the discount rate is 10%. Which printer should the firm buy?
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