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Equivalent annual cost of the epson ecotank model

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Reference no: EM132601813

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

Reference no: EM132601813

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