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 $65,000 initially and will have a $17,000 salvage value after 3 years. The operating cost with this method will be $28,000 in year 1, increasing by $3800 each year. Method B will have a first cost of $129,000, an operating cost of $8000 in year 1, increasing by $6500 each year, and a $39,000 salvage value after its 3-year life. At an interest rate of 13% per year, which method should be used on the basis of a present worth analysis?
The present worth for method A is $
The present worth for method B is $
Method is used to produce expansion anchors.
 Two methods can be used to produce expansion anchors. Method A

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