Lesco Chemical is considering two processes for making a cationic polymer. Process A has a first cost of $106,000 and an annual operating cost (AOC) of $60,000 per year. The first cost of process B is $165,000. If both processes will be adequate for 4 years and the rate of return on the increment between the alternatives is 25%, what is the amount of the AOC for process B?

The amount of the AOC for process B is $ 41,335 Incorrect .