The operating cost will be 10000 per quarter with a salvage


A new alloy can be produced by Process A which costs $200,000 to implement. The operating cost will be $10,000 per quarter with a salvage value of $25,000 after its 2-year life. Process B will have a first cost of $250,000, an operating cost of $15,000 per quarter and a $40,000 salvage value after its 4-year life. The interest rate is 8% per year compounded quarterly. Using present worth analysis, which process should be selected.
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Civil Engineering: The operating cost will be 10000 per quarter with a salvage
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