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Problem 3 (40 points) A company plans to introduce a production line. Two production lines may be selected. For Production Line A, the initial purchasing

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Problem 3 (40 points) A company plans to introduce a production line. Two production lines may be selected. For Production Line A, the initial purchasing cost is $200,000.00, and the maintenance cost is $2,850.00 for the first year, which will increase by G amount annually thereinafter. The annual benefit that Production Line A can generate (through product selling) is $44,500.00. The salvage value for Production Line A is $9,000.00. For Production Line B, the initial purchasing cost is $350,000.00, and the maintenance cost is $660.00 for the first year, which will increase by 3.5% annually thereinafter. The annual benefit that Production Line B can generate (through product selling) is $40,250.00. The salvage value for Production Line B is $20,000.00. For both production lines, the lifetime is 30 years. The present cost (i.e., benefit and salvage value not considered) for both production lines is the same. The interest rate is 8%. (A) Calculate the amount of G. (B) What is the present worth of Production Line A? (C) What is the present worth of Production Line B? (D) Which production line should the company choose

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