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Two methods can be used to produce expansion anchors. Method A costs $85,000 initially and will have a $11,000 salvage value after 3 years. The

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Two methods can be used to produce expansion anchors. Method A costs $85,000 initially and will have a $11,000 salvage value after 3 years. The operating cost with this method will be $32,000 in year 1, increasing by $2400 each year. Method B will have a first cost of $112,000, an operating cost of $6000 in year 1, increasing by $6000 each year, and a $42,000 salvage value after its 3-year life. At an interest rate of 12% per year, which method should be used on the basis of a present worth analysis? The present worth for method A is $ The present worth for method B is $ Method B is used to produce expansion anchors

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