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Sams Insurance must choose between two types of printers. Both printers meet the firms quality standard. Printer A costs $3,500 and is expected to last
Sams Insurance must choose between two types of printers. Both printers meet the firms quality standard. Printer A costs $3,500 and is expected to last 3 years with operating costs of $380 per year. Printer B costs $2,500 and is expected to last # years with operating costs of $400 per year. Assume a discount rate of &%. Which printer should Sams Insurance purchase? What is the equivalent annual cost of this machine?
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