A U-Print store requires a new photocopier. A Sonapanic copier with a four-year service life costs $35,000 and will generate an annual profit of $14,000. A higher-speed Xorex copier with a five-year service life costs $52,000 and will return an annual profit of $17,000. Neither copier will have significant salvage value. If U-Print's cost of capital is 13%, which model should be purchased?

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The Answer of A U-Print store requires a new photocopier. A Sonapanic copier with a four-year service life costs $35,000 and will generate an annual profit of $14,000. A higher-speed Xorex copier with a five-year service life costs $52,000 and will return an annual profit of $17,000. Neither copier will have significant salvage value. If U-Print's cost of capital is 13%, which model should be purchased?

A U-Print Store Requires a New Photocopier