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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 $ The companyexpects that the printer can be used for a maximumof four years. The estimated annual maintenance and operationcosts for the printer are: year $; year $; year $; year $ Additionally, the printer has a salvagevalue which decreases each year: year $; year $; year $; year $ The company intends to purchasethe printer immediately. Given these costs and the diminishing salvage value, determine the most costeffectivestrategy for the company to minimize the total cost of owning and operating the printer over the next five years.
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