Two methods can be used to produce expansion anchors. Method A costs $60,000initially and will have a $10,000 salvage value after 3 years. The operating cost with thismethod will be $20,000 in year 1, increasing by $2000 each year. Method B will have afirst cost of $100,000, an operating cost of $6000 in year 1, increasing by $6000 each year,and a $30,000 salvage value after its 3-year life. At an interest rate of 8% per year, whichmethod should be used on the basis of a present worth analysis?

The present worth for method A is $________.

The present worth for method Bis $_______.