The cash flows in Table P6.39 represent the potential annual savings associated with two different types of production processes. each of which requires an investment of $40,000. Assume an interest rate of 12%.
(a) Determine the equivalent annual savings for each process.
(b) Determine the hourly savings for each process if it will be in operation of 3.000 hours per year.
(c) Which process should be selected?

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TABLE P6.39 n 0 1 2 3 4 Process A -$40,000 $19,120 $17,840 $16,560 $15,280 Process B -$40,000 $17,350 $17,350 $17,350 $17,350