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SOLVE THE PROBLEM WITH EXCEL FUNCTIONS Two methods can be used to produce expansion anchors. Method A costs an initial $ 80,000 and would have
SOLVE THE PROBLEM WITH EXCEL FUNCTIONS Two methods can be used to produce expansion anchors. Method A costs an initial $ 80,000 and would have a salvage value of $ 15,000 after 3 years, while its operating cost would be $ 30,000 per year. Method B would have an initial cost of $ 120,000, the operation would cost $ 8,000 per year, and the salvage value after its 3 years of life would be $ 40,000. With an interest rate of 12% per year, which method should be used, based on its present value analysis? Remember excel
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