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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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