You want to buy a printer for your home office. You print about 450 pages per month. The interest rate on the money you have in the bank is 4.02% compounded monthly. The specifications of the two printers you must decide between are as follows: 122 Printer 1 costs $265. Each ink cartridge costs $8.50 and prints 400 pages. Printer 2 costs $155. Each ink cartridge costs $23.99 and prints 1,100 pages. Each printer has an estimated lifetime of 4 years. What is the present value of the costs of each printer? Which printer is more economical?

Answer rating: 100% (QA)

To determine the present value of the costs of each printer we need to calculate the total cost of o... View the full answer