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One of two methods must be used to produce expansion anchors. Method A costs $70,000 initially and will have a $9,000 sa...

One of two methods must be used to produce expansion anchors. Method A costs $70,000 initially and will have a $9,000 salvage value after 3 years. The operating cost with this method will be $33,000 per year. Method B will have a first cost of $125,000, an operating cost of $9,000 per year, and a $42,000 salvage value after its 3-year life. The interest rate for both the methods is 13%.

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Method A Initial costa 50,000 a Sarage value = 9,000 Anoreal Operating cost = 33.000 lete = 3 years Interest: 13% Using d.w.

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