Sam's Insurance Must Choose Between Two Types of Printers

question 55

Multiple Choice

Sam's Insurance must choose between two types of printers.Both printers meet the firm's 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 2 years with operating costs of $400 per year.Assume a discount rate of 10%.Which printer should Sam's Insurance purchase? What is the equivalent annual cost of this machine?

• A) Printer B; $3,194
• B) Printer A; $1,625
• C) Printer B; $2,904
• D) Printer A; $1,787

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Definitions:

Age

The length of time that a person or organism has been alive; also a specific phase in life characterized by physical, psychological, or social attributes.

Compared

Evaluated or examined the similarities and differences between two or more entities.

Hypothesis

A proposed explanation for a phenomenon, made as a starting point for further investigation.

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception, inappropriate actions and feelings, and a withdrawal from reality into fantasy and delusion.