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

Question

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The Answer of 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

A Company Is Considering Two Different Purchases from a Vendor