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If produced by Method A, a product's initial capital cost will be $112,000, its annual operating cost will be $19,000, and its salvage value after
If produced by Method A, a product's initial capital cost will be $112,000, its annual operating cost will be $19,000, and its salvage value after 3 years will be $21,000. With Method B there is a first cost of $130,000, an annual operating cost of $16,000, and a $19,000 salvage value after its 3year life. Based on a present worth analysis at a 16.1% interest rate, find
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