What is the amount of the operating cost for process b

Reference no: EM13203872

A chemical company is considering two processes for making cationic polymer. Process A will have a first cost of $100,000 and an annual operating cost of $60,000. Process B will have a first cost of $165,000. If both processes will be adequate for 4 years and the rate of return on the increment between the alternatives is 25%, what is the amount of the operating cost for process B?

Reference no: EM13203872

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