Question
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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