The Lansing Community College registrar\'s office is considering replacing some

Question

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 4 more years. They can each be sold immediately for $800; their resale value in 4 years will be zero. The total cost of the new Kodak equipment will be $120,000; the equipment will have a life of 4 years and a total disposal value at that time of $1,900. The 4 Canon operators are paid $7.70 an hour each. They work a 39-hour week and 52 weeks a year. The machines break down periodically, resulting in annual repair costs of $1,260 for each machine. Supplies cost $960 a year for each Canon copier. The Kodak system will require only 3 regular operators. Kodak has offered the college a maintenance contract that covers all machine breakdowns; the cost of the contract is $840 per year. Total cost for all supplies will be $300 per month. What is the annual recurring cash flow if Lansing keeps the Canon copiers? What is the annual recurring cash flow if Lansing buys the Kodak copiers? Assuming a discount rate of 4%, what is the net present value if Lansing keeps the Canon copiers? What is the annual recurring cash flow if Lansing buys the Kodak copiers?

Explanation / Answer

Posters rating is not 100%. Hence Pl dont answer this post as this person has been irresponsible in rating answers. So he don't deserve any solutions here. First make him rate all pending posts truthfully & also pledge that he will rate all answers within 2 days to be eligible for help from Educators & others. Till such time, just ignore all posts where rating is not 100%. This will make Cramster a better forum to contribute. Amen... Pl goto http://www.cramster.com/my_cramster/questions-and-answers/NeedRatingQuestions & rate your pending posts

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.