do by hand

POL 6,9 Polymer Molding, Inc., is considering two processes for manufacturing storm drains. Plan A involves conventional injection molding that will require making a steel mold at a cost of $2 million. The cost for inspecting, maintaining, and cleaning the molds is expected to be $5000 per month. Since the cost of materials for this plan is expected to be the same as for the other - plan, this cost will not be included in the comparison. The salvage value for plan A is expected to be 10% of the first cost. Plan B involves using an innovative process known as virtual engineered composites wherein a floating mold uses an operating system that constantly adjusts the water pressure around the mold and the chemi- cals entering the process. The first cost to tool the floating mold is only $25,000, but because of the newness of the process, personnel and product-reject costs are ex- pected to be higher than those for a conven- tional process. The company expects the operating costs to be $45,000 per month for the first 8 months and then to decrease to $10,000 per month thereafter. There will be no salvage value with this plan. At an interest rate of 12% per year, compounded monthly, which process should the com- pany select on the basis of an annual worth analysis over a 3-year study period