Question: Valley Construction s owner bought his current inkjet printer three years ago for $ 1 , 8 0 0 , and it has one more

Valley Constructions owner bought his current inkjet printer three years ago for $1,800, and it has one more year of life remaining. Valley is using straight line depreciation for the oven. Therefore, its book value is $600 now. With this printer, Valley incurs a $3,000 cost in color ink cartridges per year.
Valley is considering purchasing a new laserjet printer for $1,700. The new printer would last only one year. This printer uses $800 worth of ink cartridges per year. If the new printer is bought now, the old one could be traded-in for $200. At the end of life, the salvage value of either printer is zero.
Replacing the old printer with the new one will bring a:
A.
$700 advantage
B.
$2,100 disadvantage
C.
$300 advantage
D.
$800 disadvantage

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