quick corporate finance question

Schweser Book 2, pg 265, #9, why do you subtract 100,000 from the 75,000 in year 2 for Printer A? Thanks, Andrew

I don’t have shwesser, but if it’s possible for you to post the full question, i’ll be happy to give it a shot; I 70+'d corp finance last time, and feel comfortable with it this year too.

I just read it, it does really make much sense to me either, they only way i see it is that printer A needs to replaced every two years

answer: They are using a replacement chain approach, so that 100,000 is the intial outlay (the second time around).