There are two different methods for producing car suspensions. Method A will have a first cost of $75,000, an operating cost of $32, 000 per year, and $9000 salvage value after 4 years. Method B will have a first cost of $24,000 per year, and a $19,000 salvage value after its 4-year life. At an interest rate of 10% per year, which method should be used on the basis of annual worth analysis (which of the methods has a more positive annual worth (A) value)?
An IE student at Gannon University runs a successful Nerf Gun business with a colleague and roommate in the Dahlkemper School of Business. To further grow their business, they purchased 5 machines for $3000 each this year that they use for producing their own brand of nerf guns, which are used by students at weekend parties. Every year beginning from one year after the machine purchases were made, they make an average of $60,000 in sales. If the revenue from the sale of the nerf guns are invested in a business venture that yields an annual interest of 10%, how much will they have in their account 10 years from now?