Basis of a present worth analysis

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One of two methods must be used to produce expansion anchors. Method A costs $45,000 initially and will have a $16,000 salvage value after 3 years. The operating cost with this method will be $30,000 per year. Method B will have a first cost of $140,000, an operating cost of $16,000 per year, and a $40,000 salvage value after its 3-year life. The interest rate for both the methods is 14%.

Which method should be used on the basis of a present worth analysis? 

The present worth of method A is $ and that of method B is $ keep getting 103849 and 144073, which are incorrect

Reference no: EM132312341

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