Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. bank of america is considering replacing all of it

Bank of America is considering replacing all of it existing photocopiers in its corporate office...

60.1K

Verified Solution

Question

Finance

image

Bank of America is considering replacing all of it existing photocopiers in its corporate office with new ones. They can replace it with Canon, which will cost $350,000 in total. The Canon machine is more efficient and is expected to use less ink, which will result in an annual pre-tax savings of $165,000. Canon machines is expected to last 4 years before replacement is required. Alternatively, they can replace it with Toshiba, which will cost $425,000 in total. The Toshiba machine will result in an annual pre-tax savings of $138,000. Toshiba machine is expected to last 7 years before replacement is required. The cost of capital is 10% and the tax rate is 30%. Should Bank of America replace all its existing photocopiers? If so, which brand should it choose

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students