Question: need perfect and typed answer A new alloy can be produced by process A, which costs $200, 000. The operating cost will be $10, 000

 need perfect and typed answer A new alloy can be produced

need perfect and typed answer

A new alloy can be produced by process A, which costs $200, 000. The operating cost will be $10, 000 per quarter with a salvage value of $25, 000 after its two-year life. Process B will have a first cost of $250, 000, an operating cost of $15, 000 per quarter, and a $40, 000 salvage value after its four-year life. The interest rate is 8% a year compounded quarterly. Use present value analysis to decide which process should be selected

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