A local learning center is considering replacing the computers in their facility with thin client technology, thereby eliminating the need for individual computers at each station in the lab. The cost to purchase and install this new technology is $450,000 and it is projected to last for 6 years. The existing computers have a book value of $70,000 and a market value of $18,000 if they were to be sold. They expect to save a fair amount of money in maintenance costs and software upgrades if they go to the new technology.
(a) What would the annual savings have to be in order to warrant the replacement of the existing computers with the thin client technology?
(b) What would the annual savings have to be in order to warrant the replacement of the existing computers with the thin client technology if the existing computers have no current market value?

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The Answer of A local learning center is considering replacing the computers in their facility with thin client technology, thereby eliminating the need for individual computers at each station in the lab. The cost to purchase and install this new technology is $450,000 and it is projected to last for 6 years. The existing computers have a book value of $70,000 and a market value of $18,000 if they were to be sold. They expect to save a fair amount of money in maintenance costs and software upgrades if they go to the new technology.
(a) What would the annual savings have to be in order to warrant the replacement of the existing computers with the thin client technology?
(b) What would the annual savings have to be in order to warrant the replacement of the existing computers with the thin client technology if the existing computers have no current market value?

A Local Learning Center Is Considering Replacing the Computers in Their