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Marita Lo desires to purchase a new front office computer system for her Lo Motel (LOMO). After considerable discussion with purveyors, she has narrowed her

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Marita Lo desires to purchase a new front office computer system for her Lo Motel (LOMO). After considerable discussion with purveyors, she has narrowed her choices to system sold by ABC Company and XYZ Computers. The system proposed by each company is expected to have a useful life of seven years. She believes the alternative systems are equivalent for providing services required by the LOMO; therefore, her focus is cost. The associated costs of each system are as follows: What is the total estimated cost to operate the ABC Co. system for 7 years? $58,000 $34,000 $24,000 $48,000

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