Using present worth analysis which process should b selected

Reference no: EM13297120

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.
(There are so many solutions online non of them is correct. provide me with a correct one for high rating)

Reference no: EM13297120

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