A Company Is Considering Purchasing Two Different High-Speed Photocopiers

question 91

Multiple Choice

A company is considering purchasing two different high-speed photocopiers.The regular model costs $4,500 and the deluxe model costs $6,100.The company has projected cash savings of $800 for the first year, and then $850 annually thereafter for both models, but the vendor is claiming that the deluxe model is $400 cheaper per year to operate than the regular model.What are the payback periods for the Regular and Deluxe models respectively assuming that the vendor is correct?

• A)4.88 years; 5.63 years
• B)5.08 years; 5.29 years
• C)5.29 years; 4.88 years
• D)5.29 years; 5.63 years
• E)5.35 years; 4.92 years