Answer:
The lesser quality machine should be purchased because it has a lower equivalent annual cost of $15,075.60
Explanation:
The equivalent annual cost is the present value of the printer machine divided by the present value  annuity factor.
Annuity factor for n years = 1- (1+r)^(-n)/r
Annuity factor for four years = (1- 1.14^-4)/0.14 =2.9137
Annuity factor for three years =(1- 1.14^-3)/0.14= 2.3216
Printer                             Equivalent annual cost of printer
High quality     45,000/2.9137          15,444.22
Lesser quality   35,000/2.3216          15,075.60
The lesser quality machine should be purchased because it has a lower equivalent annual cost of $15,075.60
