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A U-Print store requires a new photocopier. A Sonapanic copier with a four-year service life costs $49,000 and will generate an annual profit of $21,000.
A U-Print store requires a new photocopier. A Sonapanic copier with a four-year service life costs $49,000 and will generate an annual profit of $21,000. A higher-speed Xorex copier with a five-year service life costs $66,000 and will return an annual profit of $24,000. Neither copier will have significant salvage value. If U-Prints cost of capital is 6%, which model should be purchased? Choose the (Click to select) model
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