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2. A company has to choose one of three different assembly methods. Method A will have a first cost of $30,000, an annual operating cost

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2. A company has to choose one of three different assembly methods. Method A will have a first cost of $30,000, an annual operating cost of $9,000, and a service life of 2 years. Method B will cost $80,000 to buy and will have an annual operating cost of $6,000 over its 4-year service life. Method C will cost $130,000 initially with an annual operating cost of $4000 over its 8-year life. Methods A and B will have no salvage value, but method C will have some equipment worth an estimated $12,000. Assume that the interest rate is 10% per year and we use the present worth method. a) (10 Points) Draw cash-flow diagrams for all methods. b) (15 Points) Which method should be selected

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