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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.

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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 rate of return (ROR) analysis? Annual Operating Printer First Cost. $ Cost (AOC). Sper Revenue. Sper year Salvage Value S year NX-1 600.000 350,000 570,000 70.000 +600.000 300.000 460,000 85,000 NX-3 -650.000 275.000 480,000 95.000 1695.000 200,000 620.000 120.000 NX-2 NX-4 Select printer (Click to selechy

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