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5. (e. cipt. What is the present worth of project A ($)? 6.fpt. What is the present value of the fuel cost for Project B

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5. (e. cipt. What is the present worth of project A ($)? 6.fpt. What is the present value of the fuel cost for Project B ($)? 7 kg. (1 pt. What is the present value of the maintenance cost for Project B (S)? 8. (1 pt.) What is the present value of the salvage value for Project B ($)? 9. (1 pt. What is the present worth of the annual benefits for Project B ($)? 10. (1 pt.) What is the present worth of Project B ($)? kpt. Suppose that Project A has a present worth of $1.294 and that project B has a present worth of $1,105 (these are not the correct answers to prior parts of the problem which project is preferred? A firm will choose one of two projects. Both projects have useful lives of 10 years. Project A has an initial cost of $12,000, annual fuel cost of $500 per year, maintenance cost of $100 at the end of year 1 that increases by $25 per year thereafter, a salvage value of $1,200, and annual benefits of $2,300. Project B has an initial cost of $18,000, annual fuel cost of $400 per year, maintenance cost of $100 at the end of year 1 that increases by 10% per year thereafter, a salvage value of $2,500, and annual benefits of $2,500. Evaluate the present worth using an interest rate of 12 percent, compounded annually. Express your answers to the nearest dollar

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