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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 $40,000,
Required information An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $40,000, an annual operating cost ( AOC ) of $12,000, and a service life of 2 years. Method B will cost $81,000 to buy and will have an AOC of $4,000 over its 4 -year service life. Method C costs $115,000 initially with an AOC of $4,000 over its 8 -year life. Methods A and B will have no salvage value, but Method C will have equipment worth 8% 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 $ The future worth of method B is \$ The future worth of method C is $ is selected
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