One of two methods must be used to produce expansion anchors. Method A costs $45,000initially and will have a $16,000 salvage value after 3 years. The operating cost with thismethod will be $30,000 per year. Method B will have a first cost of $140,000, an operatingcost of $16,000 per year, and a $40,000 salvage value after its 3-year life. The interest rate for both the methods is 14%.

Which method should be used on the basis of a present worth analysis?

The present worth of method A is$___ and that of method B is$___.