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The Lansing Community College registrar's office considering replacing some Canon copiers with faster copiers purchased from Kodak. The office's 4 Canon machines are expected to

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The Lansing Community College registrar's office considering replacing some Canon copiers with faster copiers purchased from Kodak. The office's 4 Canon machines are expected to last 5 more years. They can each be sold immediately for $1,000; their resale value in 5 years will be zero. The Canon machines require 4 operators; they are paid $8.20 an hour each and work 39 hours a week and 51 weeks year. The machines break down periodically, resulting in annual repair costs of $1,260 for each machine. Supplies cost $1,440 a year for each machine. The total cost of the new Kodak equipment will be $114,000. The equipment will have a life of 5 years and a total disposal value at that time of $1,900. The Kodak system will require only 3 reqular operators. Kodak has offered the college maintenance contract that covers all machine breakdowns; the cost of the contract is $1,200 per year. Total cost for all supplies will be $3,360 per year. Required Assuming a discount rate of 10% , compute the difference between the net present value if the registrar's office keeps the Canon copiers and the net present value if it buys the Kodak copiers. [Note: If your results favor keeping the Canon copiers, enter your net present value difference as a positive number; if your results favor buying the Kodak copiers, enter your net present value difference as number. neqative

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