In one group, find a local business, such as a copy shop, that charges for printing, faxing, copying, and scanning documents. In the other group, determine the price of a mid-range printer/copier/scanner/fax machine. Combine this information from the two groups and perform a capital budgeting analysis. Assume that one student will use the machine for 1,000 documents per semester for the next three years. Also assume that the minimum rate of return is 10%. In performing your analysis, use the present value factor for 5% compounded for six semiannual periods of 5.08.
Does your analysis support the student purchasing the printer/copier/scanner/ fax machine?