Digital Copiers are opening up a new store and are in need of new copying machine.They are evaluting two models and need to chooseone.Xerox WorkCentre copier cost $305 to purchase, result in electricity bills of $151 per year, and last for 5 years. Epson EcoTank copier cost $505, result in electricity bills of $102 per year, and last for 8 years. The discount rate is 20%.

a.What is the equivalent annual cost of the Epson EcoTankmodel?(Do not round intermediate calculations. Round your answers to 2 decimal places.)

b.Which model is more cost-effective?

Xerox WorkCenter

Epson EcoTank