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Required information

Lego Group in Bellund, Denmark, manufactures Lego toy construction blocks. The company is considering two methods

for producing special$-$purpose Lego parts. Method $1$ will have an initial cost of $$430000,$ an annual operating cost of

$$145000,$ and a life of $3$ years. Method $2$ will have an initial cost of $$630000,$ an operating cost of $$140000$ per year, and a

$6-$year life. Assume $10\mathrm{.}00\%$ salvage values for both methods. Lego uses an MARR of $14\mathrm{.}00\%$ per year.

Which method should it select on the basis of a present worth analysis? $($Include a minus sign if necessary.$)$

The present worth of method $1$ is $ and that of method $2$ is $

Method $|$

$|$is selected.