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! Required information An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of

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! Required information 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 $6,000, and a service life of 2 years. Method B will cost $78,000 to buy and will have an AOC of $4,500 over its 4-year service life. Method C costs $115,000 initially with an AOC of $7,000 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 14% of its first cost. Perform a future worth analysis to select the method at i = 10% per year. The future worth of method A is $ -360660.73 The future worth of method B is $ -445930.90 The future worth of method C is $ -404576.75 Method A is selected

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