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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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An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $ an annual operating cost AOC of $ and a service life of years. Method B will cost $ to buy and will have an AOC of $ over its year service life. Method C costs $ initially with an AOC of $ over its year life. Methods A and B will have no salvage value, but Method C will have equipment worth of its first cost.
Perform a present worth analysis to select the method at per year. Include a minus sign if necessary.
The present worth of method is $
The present worth of method B is $
The present worth of method is $
Method is selected.
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