for producing special$-$purpose Lego parts. Method $1$ will have an initial cost of $$390000,$ an annual operating cost of

$$145000,$ and a life of $3$ years. Method $2$ will have an initial cost of $$790000,$ an operating cost of $$90000$ per year, and a

$6-$year life. Assume $10\mathrm{.}00\%$ salvage values for both methods. Lego uses an MARR of $9\mathrm{.}00\%$ per year.

Problem $05\mathrm{.}019.$a $-$ Alternative Comparison $-$ different lives

Which method should it select on the basis of a present worth analysis? $($Include a minus sign if necessary.$)$

The present worth of method $1$ is $

and that of method $2$ is $

Method

$($Click to select$)$ is selected.

Problem $05\mathrm{.}019-$ Lego toy construction blocks

Lego Group in Bellund, Denmark, manufactures Lego toy construction blocks. The company is considering two methods

for producing special$-$purpose Lego parts. Method $1$ will have an initial cost of $$390000,$ an annual operating cost of

$$145000,$ and a life of $3$ years. Method $2$ will have an initial cost of $$790000,$ an operating cost of $$90000$ per year, and a

$6-$year life. Assume $10\mathrm{.}00\%$ salvage values for both methods. Lego uses an MARR of $9\mathrm{.}00\%$ per year.

Problem $05\mathrm{.}019.$a $-$ Alternative Comparison $-$ different lives

Which method should it select on the basis of a present worth analysis? $($Include a minus sign if necessary.$)$

The present worth of method $1$ is $

J and that of method $2$ is $

Method

$($Click to select$)$

is selected.