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pleace help You and your partner have become very interested in cross country motorcycle racing and wish to purchase entry-fevel equipment. You have identified two

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You and your partner have become very interested in cross country motorcycle racing and wish to purchase entry-fevel equipment. You have identified two altemative sets of equipment and gear. Package K has a first cost of $180,000, an operating cost of $5,000 per quarter, and a salvage value of $60,000 after its 2 year ite. Package L has a first cost of $260,000 with a lower operating cost of $3,900 per quarter and an estimated $28,000 salvage value after its 4 year life. Which package offers the lower present worth analysis at an interest rate of 12% per year, compounded quarterly? The present worth of package K is $ and that of package L is $ offers the lower present worh. Required information An electric switch manulacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $45,000, an annual operating cost (AOC) of $6,000, and a service life of 2 years. Method B will cost $85,000 to buy and will have an AOC of $3,000 over its 4 year service life. Method C costs $145,000 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

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