so you them the answer you submit must be the d operators; they are pald $8.10 a

Question

so you them the answer you submit must be the d operators; they are pald $8.10 an hour each and work 40 hours a week and 52 weeks a year. The machines break down periodically, resulting in annual repair costs of $1,320 for each and Supplies cost $960 a year for each machine. vill have a life of 5 years and a total disposal value at that time of $1, 500. The Kodak system will require only 2 regular operators. supplies wil be $3,600 per year. Kodak has offered the college a maintenance contract that covers all machine breakdowns; the cost of the contract is $1,020 per year. Total cost for all favor keeping the Canon copiers, enter your net present value difference as a positive number; if your results favor buying the Kodak copiers, enter your de

Explanation / Answer

Canon :-

PVAF @ 14% for 5 years = 3.43308

Operators cost (8.10 * 40 hrs * 52 weeks * 4 operator) * 3.43308

231362

Machine Breakdown & Supplies cost

{(1320 + 960) * 4 machines} * 3.43308

31310

Total Cash outflow

262672

Kodak :-

PVAF @ 14% for 5 years = 3.43308

PVIF @ 14% for 5th year = 0.51936866

Kodak Equipment cost

119000

Operators cost (8.10 * 40 hrs * 52 weeks * 2 operator) * 3.43308

115681

Maintainance contract cost & supplies cost

(1020 + 3600) } * 3.43308

15861

(-) Scrap value of Canon (600 * 4)

-2400

(-) Scrap value of Kodak (1500 * 0.51936866)

-779

Total Cash outflow

247363

Answer = 247363 - 262672 = -15309

Operators cost (8.10 * 40 hrs * 52 weeks * 4 operator) * 3.43308

231362

Machine Breakdown & Supplies cost

{(1320 + 960) * 4 machines} * 3.43308

31310

Total Cash outflow

262672

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