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5. Sams Insurance must choose between two types of printers. Both printers meet the firms quality standard. Printer A costs $7,000 and is expected to
5. Sams Insurance must choose between two types of printers. Both printers meet the firms quality standard. Printer A costs $7,000 and is expected to last 3 years with operating costs of $760 per year. Printer B costs $5,000 and is expected to last 2 years with operating costs of $800 per year. Assume a discount rate of 10%. What is the Present value of the cost of the Printers?
a. | $3,194; $4,445 |
b. | $6388; $8890 |
c. | $2,904; $5603 |
d. | $5,787; $7890 |
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