A Company Is Considering Two Different Purchases from a Vendor

question 34

Multiple Choice

A company is considering two different purchases from a vendor, for a high-speed photocopier. 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 the regular model, 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?

• 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

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Definitions:

Plasticity

The brain's ability to change and adapt as a result of experience and new learning.

Frontal Lobes

The frontal lobes are areas of the brain that are involved in voluntary movement, expressive language, and managing higher level executive functions such as problem-solving and planning.

Motor Areas

Regions in the brain responsible for the planning, control, and execution of voluntary movements.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, responsible for problem solving, judgment, and motor function.