Question: Lesco Chemical is considering two processes for making a cationic polymer. Process A has a first cost of $100,000 and an AOC of $60,000 per

Lesco Chemical is considering two processes for making a cationic polymer. Process A has a first cost of $100,000 and an AOC of $60,000 per year. Process B’s first cost is $165,000. If both process will be adequate for 4 years and the rate of return on the increment between the alternatives is 25%, what is the amount of the AOC for process B?

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