Polytec Chemical, Inc. must decide between two additives to improve the dry-weather stability of its low-cost acrylic paint. Additive A will have an equipment and installation cost of $112,000 and an annual cost of $55,000. Additive B will have an installation cost of $175,000 and an annual cost of $31,000. If the company uses a five-year recovery period for paint products and an MARR of 30% per year, which process is favored on the basis of an incremental rate of return analysis? Also, determine the value of ' The value of ar is 7% On the basis of an incremental rate of return analysis, process Kck to eolecg 8 is favored