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Xerox's iGenX high-speed commercial printers. The machines cost $350,000 to $600,000 depending on what options the client selects. The operating costs and revenues generated
Xerox's iGenX high-speed commercial printers. The machines cost $350,000 to $600,000 depending on what options the client selects. The operating costs and revenues generated are related to a large extent to the speed and other capabilities of the copier. Spectrum CO. is considering the four machines shown below. a) Which copier should be chosen based on PP with no return? b) Which copier should be chosen based on PP with MARR 15% per year? c) Which copier should be chosen based on PW with MARR 15% per year? Assume 3 year study period. Copier iGen-1 iGen-2 iGen-3 iGen-4 Initial Investment, $ -350,000 -450,000 -500,000 -600,000 Operating Cost, $ per year -200,000 -175,000 -125,000 -100,000 Annual Revenue, $ per year +300,000 +320,000 +340,000 +380,000
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