Anika plans to purchase a Janome embroidery machine. The retail price for the Janome 12 model is $10,000 plus $500 for lifetime maintenance and $1,500 per year (for five years) in operating expenses. The Janome 15 model retails for $12,000 and has the same lifetime maintenance fee. However, the Janome 15 model increases productivity by $500 annually and reduces operating expenses by $500 per year for five years. Assuming a five-year horizon, what is the economic savings (customer inducement) for purchasing the Janome 15 model?
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Home » Business » Anika plans to purchase a Janome embroidery machine. The retail price for the Janome 12 model is $10,000 plus $500 for lifetime maintenance and $1,500 per year (for five years) in operating expenses.