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Homework answers / question archive / Dundar Mifflin is considering the purchase of a new printer and has narrowed down the possibilities to two models which perform equally well
Dundar Mifflin is considering the purchase of a new printer and has narrowed down the possibilities to two models which perform equally well. However, the method of paying for the two models is different. Model A requires $8,000 per year payment for the next five years. Model B requires the following payment schedule.
| Year | Payment (Model 2) |
| 1 | $10,000 |
| 2 | 9,000 |
| 3 | 8,000 |
| 4 | 5,000 |
| 5 | 3,000 |
Which model should you buy assuming a 12% rate?
