This is a problem with mutually exclusive projects. You only have to do the net present value method, so you can evaluate the projects separately, or you can combine them. But if you evaluate them separately, the answer you submit must be the difference in the two net present values (see the directions for the correct sign to use). As you determine the cash flows, make sure that you use the correct project life and that you recognize and treat all one-time cash flows properly. Also, use the present values from the tables on page 113 of the Coursepack. The Lansing Community College registrar's office is 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 $6,700; their resale value in 5 years will be zero. The Canon machines require 4 operators; they are each paid $18.20 an hour and work 40 hours a week and 52 weeks a year. The machines break down periodically, resulting in annual repair costs of $1,000 for each machine. The annual cost of supplies for each machine will be $1,200. The total cost of the new Kodak equipment will be $275,000. The equipment will have a life of 5 years and a total disposal value at that time of $19,000. The Kodak system will require only 2 regular operators, working the same number of hours, but earning $23.00 per hour. Kodak has offered the college a maintenance contract that covers all machine breakdowns; the cost of the contract is $6,120 per year. The cost of supplies for all the machines combined will be $5,520 a year. Required Assuming a discount rate of 4%, 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 a negative number.]