### Which process should be selected to calculate interest

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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 value analysis which process should be selected?

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