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healthRx, a mayor manufacturer of non-invasive breast and cervical cancer detention products is planning to expand its market in Asia. Three single-patient use disposable devises

healthRx, a mayor manufacturer of non-invasive breast and cervical cancer detention products is planning to expand its market in Asia. Three single-patient use disposable devises based on its proprietary technology to identify cancers and precancers painlessly and noninvasively by scanning the cervix with light are being considered. The costs to manufacture these devises are the following:

Alternative

Soft Touch

Light Touch

Gentle Touch

Initial Costs

$500,000

$520,000

$535,000

Annual Operating Costs

$15,000

$14,5000

$14,000

Salvage Value

$70,000

$80,000

$85,000

Sell Price/ Unit

$3,0000

$3,600

$3,650

If the company sell 1,00 unit/ year, which devise should be selected based on the present worth method? Assume the company uses a MARR of 11% and wants to recover its investment in 7 years.

(hint: be careful with + and signs)

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