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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 $31,000,
Required information An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $31,000, an annual operating cost (AOC) of $5,000, and a service life of 2 years. Method B will cost $71,000 to buy and will have an AOC of $3,500 over its 4 -year service life. Method C costs $117,000 initially with an AOC of $3,500 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 7% of its first cost. Perform a present worth analysis to select the method at i=9% per year. The present worth of method A is $ The present worth of method B is \$ The present worth of method C is $ Method is selected
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