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An office uses 1,000 photocopies per working day and there are 200 working days per year....

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Finance

An office uses 1,000 photocopies per working day and there are200 working days per year. Brand A copier costs $3,000 and willproduce a total of one million copies before it wears out. BrandB’s copier costs $5,000 and will produce 2 million copies over itslife. Maintenance and materials cost 3 cents per copy with eithermachine, and neither machine will have any salvage value. Therequired return is 10 percent per year. Which machine should thecompany acquire.
Please solve with out using excel. and show steps please.

Answer & Explanation Solved by verified expert
4.3 Ratings (667 Votes)
Annual requirement of photocopies Daily required photocopy x working days per year 1000 x 200 200000 Useful life of Brand A copier Total capacity Annual requirement 1000000200000 5    See Answer
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An office uses 1,000 photocopies per working day and there are200 working days per year. Brand A copier costs $3,000 and willproduce a total of one million copies before it wears out. BrandB’s copier costs $5,000 and will produce 2 million copies over itslife. Maintenance and materials cost 3 cents per copy with eithermachine, and neither machine will have any salvage value. Therequired return is 10 percent per year. Which machine should thecompany acquire.Please solve with out using excel. and show steps please.

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