15. 6.41 Spectrum Imaging Systems is considering the purchase of a new printer based on recent contracts it received for printing weekly magazines and mail-out advertising materials. The operating costs and revenues generated are related to a large extent to the speed and other capabilities of the printer. Spectrum uses a 3-year planning period and a MARR of 15% per year. Which of the four printers detailed below should the company acquire on the basis of an incremental ROR analysis?

Table Summary: Table divided into 5 columns with the headings marked as: Printer; First cost in dollars; AOC in dollars per year; Revenue in dollars per year; and Salvage Value in dollars.

Printer First Cost, $

AOC, $ per year Revenue, $

per year Salvage Value, $

Nx-1 −500,000 −350,000 450,000 70,000 Nx-2 −600,000 −300,000 460,000 85,000 Nx-3 −650,000 −275,000 480,000 95,000 Nx-4 −750,000 −200,000 510,000 120,000