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You can get a Xerox Workcenter 5225 at a minimum price of Rs 3000 to Rs 4500.
Yes, many times Xerox machines are used for printing newspapers. As the volume of newspapers is very high and multiple spot colors are needed for printing newspapers, many brands have designed these machines with high capacity and for single-color as well as multiple color printing.
It is a common trouble in this machine. You should check the tray and clean it if the surface of the tray is dirty. Furthermore, do not keep molded papers inside as they might get detected.