# Finance

Campus Print Shop is thinking of purchasing a new, modern copier that automatically collates pages. The machine would cost \$22,000 cash. A service contract on the machine, considered a must because of its complexity, would be an additional \$200 per month. The machine is expected to last eight years and have a resale value of \$4,000. By purchasing the new machine, Campus would save \$450 per month in labor costs and \$100 per month in materials costs due to increased efficiency. Other operating costs are expected to remain the same. The old copier would be sold for its scrap value of \$1,000. Campus requires a return of 14% on its capital investments.

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1. good!

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posted by kingg

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