wo methods can be used to produce solar panels for electric power generation. Method 1 will have an initial cost of $720,000, an AOC of $180,000 per year, and $130,000 salvage value after its 3-year life. Method 2 will cost $850,000 with an AOC of $130,000 and a $160,000 salvage value after its 5-year life. Assume your boss asked you to determine which method is better, but she wants the analysis done over a three-year planning period. You estimate the salvage value of Method 2 will be 36% higher after three years than it is after five years. If the MARR is 13% per year, which method should the company select?

The company should select (Click to select)method 2method 1