The law firm of Matadin and Howe relies heavily on a colour laser printer to process the paperwork. Recently the printer has not functioned well and print jobs were not being processed. Management is considering updating the printer with a faster model. Current Printer New Model Original purchase cost Accumulated depreciation $30,300 $25,400 17,600 Estimated operating costs (annual) 2.800 1,800 Useful life 5 years 5 years If sold now, the current printer would have a salvage value of $3,200. 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 5 years. Prepare an analysis to show whether the company should retain or replace the printer. (If an amount reduces the net income then enter with a negative sign preceding the number, eg.-15,000 or parenthesis, eg. (15,000)) Net Income Question 26 of 28 printer would have zero salvage value. The new printer is expected to have zero salvage value after 5 years. -15 E Prepare an analysis to show whether the company should retain or replace the printer. If an amount reduces the net income then enter with a negative sign preceding the number, eg.-15,000 or parenthesis, eg. (15,000)) Period of 5 years Variable costs Salvage value New machine cost Keep Printer The company should the printer. Replace Printer Net Income Increase (Decrease) $ $