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Xeroxs iGenX high-speed commercial printers. The machines cost $400,000 to $650,000 depending on what options the client selects. The operating costs and revenues generated are
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Xeroxs iGenX high-speed commercial printers. The machines cost $400,000 to $650,000 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 12% per year?
- c) Which copier should be chosen based on PW with MARR 12% per year? Assume 3
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year study period
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Copier | Initial Investment, $ | Operating Cost, $ per Year | Annual Revenue, $ per Year |
iGen-1 | -400,000 | -350,000 | +450,000 |
iGen-2 | -500,000 | -300,000 | +460,000 |
iGen-3 | -550,000 | -275,000 | +480,000 |
iGen-4 | -650,000 | -200,000 | +510,000 |
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