Two methods can be used for producing expansion anchors. Method A costs $80,000 initially and will have a $15,000 salvage value after 3 years. The operating cost with this method will be $30.000 per year. Method B will have a first cost of $120,000, an operating cost of $8000 per year, and a $40,000 salvage value after its 3-year life. At an interest rate of 12% per year, which method should be used on the basis of a present worth analysis? When you are evaluating projects by the present worth method, how do you know which one(s) to select if the projects are (a) independent and (b) mutually exclusive? Swagelok Enterprises is a manufacturer of miniature fittings and valves. Over a 5-year period, the costs associated with one product line were as follows: first cost of $30,000 and annual costs of $18.000. Annual revenue was $27,000, and the used equipment was salvaged for $4000. What rate of return did the company make on this product? A plastics company is considering two injection molding processes. Process X will have a first cost of $600,000, annual costs of $200,000, and a salvage value of $100,000 after 5 years. Process Y will have a first cost of $800,000, annual costs of $150,000, and a salvage value of $230,000 after 5 years. (a) What is the rate of return on the increment of investment between the two? (b) Which process should the company select on the basis of a rate of return analysis, if the MARR is 20% per year