Office Automation, Inc., must choose between two copiers, the XX40 or the RH45. The XX40 costs $2,200
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Office Automation, Inc., must choose between two copiers, the XX40 or the RH45. The XX40 costs $2,200 and will last for three years. The copier will require an aftertax cost of $145 per year after all expenses. The RH45 costs $2,800 and will last five years. The afterteax cost for the RH45 will be $245 All cash flows occur at the end of year. If the discount rate is 10 percent which copier should the company choose?
Related Book For
Corporate Finance
ISBN: 978-0077861759
11th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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