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Please Solve A and B An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first
Please Solve A and B
An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $35,000, 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 $5,500 over its 4-year service life. Method C costs $125,000 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=13% per year. The future worth of method A is $ The future worth of method B is $ The future worth of method C is $ Method is selectedStep by Step Solution
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