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Business, 22.11.2019 00:31 KittehMeow6039

An electric switch manufacturing company is trying to decide between three different assembly methods. method a has an estimated first cost of $40,000, an annual operating cost (aoc) of $9000, and a service life of 2 years. method b will cost $80,000 to buy and will have an aoc of $6000 over its 4-year service life. method c costs $130,000 initially with an aoc of $4000 over its 8-year life. methods a and b will have no salvage value, but method c will have equipment worth 10% of its first cost. perform future worth analysis to select the method at i = 10% per year.

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