Question: Two processes can be used for producing a polymer that reduces friction loss in engines. Which process should be selected on the basis of future

Two processes can be used for producing a polymer that reduces friction loss in engines. Which process should be selected on the basis of future worth analysis, compounded monthly? MARR 12%. Choose the closest value.

Process A Process B

Initial Cost $20,000 $ 30,000

Annual Cost $ 9,000 $ 8,000

Salvage Value $ 5,000 $ 7,000

Life, Years 2 4

Answers:	1. Select Process B as its overall cost is $64,200 cheaper.
	2. Select Process B as its overall cost is $69,200 cheaper.
	3. Select Process B as its overall cost is $68,200 cheaper.
	4. Select Process B as its overall cost is $66,200 cheaper.

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