12-13: A company is considering two alternatives for manufacturing a certain part. Method R will have a first cost of $40,000, an annual operating cost of $25,000, and a $10,000 salvage value after its five year life. Method S will have an initial cost of $100,000, an annual operating cost of $15,000, and a $12,000 salvage value after its 10 year life. At an interest rate of 12% per year, the annual worth values of Method R is nearest to: a. AWR = $31,500 b. AWR = $30,000 C. AWR = $34,522 d. AWR = $32,016