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Required information One of two melh ods must be used to produce expansion anchors. Method A costs $50,000 initially and will have a $8,000 salvage

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Required information One of two melh ods must be used to produce expansion anchors. Method A costs $50,000 initially and will have a $8,000 salvage value after 3 yea rs. The operating cost with this method will be $22,000 per year. Method B will have a rst cost of $100,000, an operating cost of $8,000 per year, and a $32,000 salvage value after its 3year life. The interest rate for both the methods is 12%. Which method should be used on the basis of a present worm analysis? The present worth of method A is $ 141,681 a and that of method B is $ 111142 0. Method B o is selected by the company

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