The costs associated with producing chemically treated vinyl rollers and fiber-impregnated rubber rollers are estimated. Determine which of the two types should be selected from ROR analysis. Assume the MARR is 8% per year. Do not use Excel.

First Cost, $ Annual Income, $ Fiber-impregnated -50,000 15,000 Chemically treated -30,000 10,000 for first year Increase by 500 every year starting from the 2nd year 5,000 10,000 Salvage Value, $ Life, years 8 8