Question: Tom is comparing two printers for his small business. The purchase price for Printer A is $1,000, with maintenance and operations costs of $400. Printer
Tom is comparing two printers for his small business. The purchase price for Printer A is $1,000, with maintenance and operations costs of $400. Printer B is more expensive, with a $1,500 purchase price. Printer B increases productivity by $100, and reduces the maintenance and operations costs by half. The expected lifetime value is one year. What is the economic value to the customer (EVC) of Printer B? (Show detailed calculations to receive full credit. If only the answer is shown partial credit will be given).
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