What is the present worth of each project

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Tempura, Inc., is considering two projects. Project A requires an investment of $64,000. Estimated annual receipts for 20 years are $21,000; estimated annual costs are $12,500. An alternative project, B, requires an investment of $59,000, has annual receipts for 20 years of $30,000, and has annual costs of $18,000. Assume both projects have a zero salvage value and that MARR is 8.0 %/year.

What is the present worth of each project?

Project A: $

Project B: $

Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±20.

?Which project should be reccommended, Project A or Project B?

Reference no: EM131510950

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