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An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $32,000, an annual

An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $32,000, an annual operating cost (AOC) of $9,000, and a service life of 2 years. Method B will cost $75,000 to buy and will have an AOC of $3,000 over its 4-year service life. Method C costs $141,000 initially with an AOC of $5,500 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 11% of its first cost.

Perform a future worth analysis to select the method at i = 12% per year.

The future worth of method A is $

The future worth of method B is $

The future worth of method C is $

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