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6.41 Spectrum Imaging Systems is considering the purchase of a new printer based on recent contracts it received for printing weekly magazines and mailout advertising

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6.41 Spectrum Imaging Systems is considering the purchase of a new printer based on recent contracts it received for printing weekly magazines and mailout 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? \begin{tabular}{ccccc} \hline Printer & \begin{tabular}{c} First \\ Cost, $ \end{tabular} & \begin{tabular}{c} AOC, \\ per year \end{tabular} & \begin{tabular}{c} Revenue, \\ \$ per year \end{tabular} & \begin{tabular}{c} Salvage \\ Value, \$ \end{tabular} \\ \hline Nx1 & 500,000 & 350,000 & 450,000 & 70,000 \\ Nx2 & 600,000 & 300,000 & 460,000 & 85,000 \\ Nx3 & 650,000 & 275,000 & 480,000 & 95,000 \\ Nx4 & 750,000 & 200,000 & 510,000 & 120,000 \\ \hline \end{tabular}

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