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Polytec Chemical, Inc. must decide between two additives to improve the dry-weather stability of its low-cost acrylic paint. Additive A will have an equipment and

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Polytec Chemical, Inc. must decide between two additives to improve the dry-weather stability of its low-cost acrylic paint. Additive A will have an equipment and installation cost of $108,000 and an annual cost of $55,000. Additive B will have an installation cost of $175,000 and an annual cost of $29,000. If the com pany uses a five-year recovery period for paint products and an MARR of 24% per year, which process is favored on the basis of an incremental rate of return analysis? Also, determine the value of The value of aris-%. On the basis of an incremental rate of return analysis, process Cick to seet) is favored

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