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Question 2 6 points 2 kinders Enterprises relies heavily on a copier machine to process its paperwork. Recently the copy clerk has not been able
Question 2 6 points 2 kinders Enterprises relies heavily on a copier machine to process its paperwork. Recently the copy clerk has not been able to process 3 all the necessary copies within the regular work week. Management is considering updating the copier machine with a faster model. Current Copier New Model 5 Original purchase cost $28,000 $19,600 6 Accumulated depreciation 14,000 Estimated operating costs 7 (annual) 7,000 2,800 8 Useful life, years 9 If sold now, the current copier would have a salvage value of $2,800 If operated for the remainder of its useful life, the current 10 machine would have zero salvage value. The new machine is expected to have zero salvage value after 3 years. 11 Instructions 12 1. Prepare an analysis to show whether the company should retain or replace the machine 13 2. What will be a gain/loss on sale of current copier, if the company decides to replace? your name and Ouestion 1 Question 2 Gestion
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