Business, 06.05.2020 00:30 ojbank4411

If produced by Method A, a product's initial capital cost will be $100,000, its annual operating cost will be $20,000, and its salvage value after 3 years will be $20,000. With Method B there is a first cost of $150,000, an annnual operation cost of $100,000, and a $50,000 salvage value after its 3-year life. Baed on a present worth analysis at a 15% interest rate, which method should be used?

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If produced by Method A, a product's initial capital cost will be $100,000, its annual operating cos...