HealthRx, a Major Manufacturer of Non- Invasive Breast and Cervical

HealthRx, a major manufacturer of non- invasive breast and cervical cancer detection products is planning to expand its market in Asia. Three single- patient- use disposable devices 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 devices are the following: $$\begin{array} { | l | l | l | l | } \hline \text { Alternative } & \text { Soft Touch } & \text { Light Touch } & \text { Gentle Touch } \\\hline \text { Initial costs } & \$ 500,000 & \$ 520,000 & \$ 535,000 \\\hline \text { Annual operating costs } & \$ 15,000 & \$ 14,500 & \$ 14,000 \\\hline \text { Salvage Value } & \$ 70,000 & \$ 80,000 & \$ 85,000 \\\hline \text { Sell Price per unit } & \$ 3500 & \$ 3600 & \$ 3650 \\\hline\end{array}$$ If the company sells 1000 units per year, which device 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.