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RJR Logistics needs a new color printer. The cost of the printer is $ 2 , 0 2 5 , plus $ 3 8 0

RJR Logistics needs a new color printer. The cost of the printer is $2,025, plus $380 per year in maintenance
costs (the first maintence cost would occur in 1 year). The color printer will last for five years. Alternatively, a local
company offers to lease the printer to RJR and do the maintenance as well. If the discount rate is 5.7%, what is the
most RJR would be willing to pay per year to lease the color printer (the first lease payment would be due in
one year)?
The most RJR would be willing to pay per year to lease the color printer is closest to:
A. $897
B. $857
C. $884
D. $777
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