Which copier should the company choose

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Crash Realty must choose betWeen tWO copiers, the 4GX and the SGQ. The 4GX costs $6000 and will last for four (4) years. The copier will require a real aftertax cost of $600 per year including all relevant expenses. The SGQ costs $8000 and will last six (6) years; its real aftertax cost will be $500 per year. All cash ?ows occur at the end of the year. The in?ation rate is expected to be 2 percent per year, and the nominal discount rate is 5 percent. Which copier should the company choose?

Reference no: EM133068212

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