The law firm of Sandhill and Tamarisk relles heavily on a colour laser printer to process its paperwork Recently the printer has not functioned well and print jobs were not being processed A major overhaul costing $13,200 would make the current printer work properly for the balance of its useful life Management is considering updating the printer with a faster model. Original purchase cost Accumulated depreciation Estimated operating costs (annual) Useful life Period of 5 years Variable costs Major overhaul Salvage value New machine cost The company should Current Printer If sold now, the current printer would have a salvage value of $3,100. 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, e.g.-15,000 or parenthesis, e.g. (15,000).) $ $32,000 18,400 3,000 Keep Printer 5 years New Model the printer $25,600 $ 2,200 5 years Replace Printer $ $ Net Income Increase (Decrease)

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