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Valley Construction s owner bought his current inkjet printer three years ago for $ 1 , 8 0 0 , and it has one more
Valley Constructions owner bought his current inkjet printer three years ago for $ and it has one more year of life remaining. Valley is using straight line depreciation for the oven. Therefore, its book value is $ now. With this printer, Valley incurs a $ cost in color ink cartridges per year.
Valley is considering purchasing a new laserjet printer for $ The new printer would last only one year. This printer uses $ worth of ink cartridges per year. If the new printer is bought now, the old one could be tradedin for $ At the end of life, the salvage value of either printer is zero.
Replacing the old printer with the new one will bring a:
A
$ advantage
B
$ disadvantage
C
$ advantage
D
$ disadvantage
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