maintenance charge will rise to $8,100. The machines have a
current resale value of $8,100, but at the end of year 2 their
value will have fallen to $3,600. By the end of year 6 the machines
will be valueless and would be scrapped.
Hayden is considering replacing the copiers with new machines
that would do essentially the same job. These machines cost
$26,000, and the company can take out an eight-year maintenance
contract for $1,300 a year. The machines...