Konica Minolta plans to sell a copier that prints documents on both sides simultaneously, cutting in half the time it takes to complete big commercial jobs. The faster copier is expected to increase profit by $2,500,000 per year, regardless of which of the following rollers the company uses in its copiers. The estimated costs associated with chemically treated vinyl rollers and fiber-impregnated rubber rollers are shown below. Determine which of the roller types should be selected on the basis of an ROR analysis assuming the company's MARR is 25% per year (Use spreadsheet) (30). Roller type First cost, $1000 Annual cost, $1000 Salvage value, $1000 Life, years Treated -5000 -1000 100 5 Impregnated -6500 -650 200 5
Konica Minolta plans to sell a copier that prints documents on both sides simultaneously, cutting in half the time it takes to complete big commercial jobs. The faster copier is expected to increase profit by $2,500,000 per year, regardless of which of the following rollers the company uses in its copiers. The estimated costs associated with chemically treated vinyl rollers and fiber-impregnated rubber rollers are shown below. Determine which of the roller types should be selected on the basis of an ROR analysis assuming the company's MARR is 25% per year (Use spreadsheet) (30). Roller type First cost, $1000 Annual cost, $1000 Salvage value, $1000 Life, years Treated -5000 -1000 100 5 Impregnated -6500 -650 200 5
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Solve the following question using an Excel Spreadsheet.
Transcribed Image Text:Konica Minolta plans to sell a copier that prints documents on both sides simultaneously,
cutting in half the time it takes to complete big commercial jobs. The faster copier is
expected to increase profit by $2,500,000 per year, regardless of which of the following
rollers the company uses in its copiers. The estimated costs associated with chemically
treated vinyl rollers and fiber-impregnated rubber rollers are shown below. Determine
which of the roller types should be selected on the basis of an ROR analysis assuming the
company's MARR is 25% per year (Use spreadsheet) (30).
Roller type
First cost, $1000
Annual cost, $1000
Salvage value, $1000
Life, years
Treated
-5000
-1000
100
5
Impregnated
-6500
-650
200
5
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