The following cash flows represent the potential annual savings associated with two different types of production processes, each of which requires an investment of $22,000:

Assuming that the interest rate is 15%, complete the following tasks:
(a) Determine the equivalent annual savings for each process.
(b) Determine the hourly savings for each process, assuming 2,000 hours of operation per year.
(c) Determine which process should be selected.

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Process A Process B п -$22,000 -$22,000 $9,120 $7,350 $7,840 $7,350 2 $6,560 $7,350 3 $3,280 $7,350 4