Question: Zeta Printers is considering replacing the existing press with a more efficient press. The new press costs $139,804 and requires $16,215in installation costs. The old

Zeta Printers is considering replacing the existing press with a more efficient press. The new press costs $139,804 and requires $16,215in installation costs. The old press was purchased 3 years ago for $110,536 and it required another $11,868in installation costs at that time. and can be sold for $33,338net of any removal coats today. The New Press will increase revenue by $300000 and cut costs by $100000. Both presses are depreciated under the MACRS 5-YEAR recovery schedule. The firm is in 31% marginal rate.

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