Question 7 Your answer is partially correct. Try again. The law firm of Matadin and Howe relies heavily on a colour laser printer to process the paperwork. Recently the printer has not functioned well and print jobs were not being processed. Management is considering updating the printer with a faster model. New Model $25,100 Original purchase cost Accumulated depreciation Estimated operating costs (annual) Useful life Current Printer $30,900 15,000 2,800 5 years 1,800 5 years If sold now, the current printer would have a salvage value of $3,300. If operated for the remainder of its useful life, the current printer would have zero salvage value. The new printer is expected to have zero salvage value after 5 years. Prepare an analysis to show whether the company should retain or replace the printer. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Prepare an analysis to show whether the company should retain or replace the printer. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15, 000).) Keep Printer Replace Printer Net Income Increase (Decrease) Period of 5 years 14000 14000 2200 6800 Variable costs x= Salvage value -3300 3000 x= New machine cost -24000 25100 14000 29000 -14200 The company should keep the printer