Question: Two methods can be used to produce expansion anchors. Method A costs $ 6 5 , 0 0 0 initially and will have a $
Two methods can be used to produce expansion anchors. Method A costs $ initially and will have a $ salvage value after years. The operating cost with this method will be $ in year increasing by $ each year. Method will have a first cost of $ an operating cost of $ in year increasing by $ each year, and a $ salvage value after its year life. At an interest rate of per year, which method should be used on the basis of a present worth analysis?
The present worth for method is $
The present worth for method B is $
Method is used to produce expansion anchors.
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