Xenon Document services needs to buy printers for their new store. They are choosing between two printer models. HP DeskJet model cost $400 to purchase, result in electricity bills of $170 per year, and last for 5 years. Epson Inkjet model cost $600, result in electricity bills of $140 per year, and last for 8 years. The discount rate is 21%.

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

b. Which model is more cost-effective?

HP DeskJet model Epson Inkjet