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A company is planning to purchase a new printer for its office. The initial cost of the printer is $ 5 0 0 . The

A company is planning to purchase a new printer for its office. The initial cost of the printer is $500. The company expects that the printer can be used for a maximumof four years. The estimated annual maintenance and operation costs for the printer are: year 1, $100; year 2, $150; year 3, $200; year 4, $250. Additionally, the printer has a salvage value which decreases each year: year 1, $300; year 2, $200; year 3, $100; year 4, $0. The company intends to purchase the printer immediately. Given these costs and the diminishing salvage value, determine the most cost-effective strategy for the company to minimize the total cost of owning and operating the printer over the next five years.

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