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Digital Copiers are opening up a new store and are in need of new copying machine. They are evaluting two models and need to choose one. Xerox WorkCentre copier cost $305 to purchase, result in electricity bills of $151 per year, and last for 5 years. Epson EcoTank copier cost $505, result in electricity bills of $102 per year, and last for 8 years. The discount rate is 20%.
a. What is the equivalent annual cost of the Epson EcoTank model? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
b. Which model is more cost-effective?
Xerox WorkCenter
Epson EcoTank
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At Lakeside Manufacturing, budgets are the responsibility of everyone. Each department collaborates in determining its expected needs, and sales personnel determine the likely sales volume. Al Talbott, one of the production managers, believes in b..
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