$2$:$10$

$24$ February

$7$:$07$ PM

Lasting Impressions Company

T asting Impressions $($LI$)$ Company is a medium$-$sized commercial printer of pro$\_$ motional advertising brochures, booklets, and other direct$-$mail pieces. The firm's major clients are ad agencies based in New York and Chicago. The typical job is characterized by high quality and production runs of more than $50,000$ units. LI has not been able to compete effectively with larger printers because of its existing older, inefficient presses. The firm is currently having problems meeting run length requirements as well as meeting quality standards in a cost$-$effective manner.

The general manager has proposed the purchase of one of two large, six$-$color presses designed for long, high$-$quality runs. The purchase of a new press would enable LI to reduce its cost of labor and therefore the price to the client, putting the firm in a more competitive position. The key financial characteristics of the old press and of the two proposed presses are summarized in what follows.

Old press Originally purchased $3$ years ago at an installed cost of $$400,000,$ it is being depreciated under MACRS using a $5-$year recovery period. The old press has a remaining economic life of $5$ years.

Please provide answers and complete steps to do questions a until f$.$