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Bill Jones Has Decided to Purchase a Fax Machine

Question 52

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Bill Jones has decided to purchase a fax machine.He has narrowed the choice to two: Brand A and Brand B.Both brands have the same transmitting speed and use the same type of paper.Both come from companies with good reputations.The selling price for each is identical.After some review, Bill discovers that the cost of operating and maintaining Brand A over a three-year period is estimated to be $300.For Brand B, the operating and maintenance cost is $150.The sales agent for Brand B emphasizes the lower operating and maintenance cost.She claims that it is lower than any other fax machine.In addition, she provides Bill with a copy of an article appearing in a PC magazine that rates service performance of various fax machines.Brand B is rated number one.
Required:
Bill Jones has decided to purchase a fax machine.He has narrowed the choice to two: Brand A and Brand B.Both brands have the same transmitting speed and use the same type of paper.Both come from companies with good reputations.The selling price for each is identical.After some review, Bill discovers that the cost of operating and maintaining Brand A over a three-year period is estimated to be $300.For Brand B, the operating and maintenance cost is $150.The sales agent for Brand B emphasizes the lower operating and maintenance cost.She claims that it is lower than any other fax machine.In addition, she provides Bill with a copy of an article appearing in a PC magazine that rates service performance of various fax machines.Brand B is rated number one. Required:

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