5. Information regarding two mutually exclusive projects are given in the table below. Salvage values are not proceeds from the resale of assets at the end of a given year. For both projects, same costs and salvage values will be available for any future cycles (that is, for an indefinite period). Click the icon to view the additional data about the mutually exclusive projects. (a) If the analysis period is infinite, which project is a better choice at MARR = 11%7 (Hint: you can use the smallest common multiple of useful lives.) PW for project B1 is $ thousand. (Round to one decimal place.) PW for project B2 is $ thousand. (Round to one decimal place.) Which project would you choose? O Project B2 O Project B1 (b) Review your choice in part a using a 10-year planning horizon (MARR is again 11%)? PW for project B1 is thousand. (Round to one decimal place.) PW for project B2 is $ thousand. (Round to one decimal place.) Now, which project would you choose? O Project B2 Project B1 1: More Info B2 Salvage Value n Cash Flow 0 1 2 3 4 5 B1 Cash Flow Salvage Value - $19,000 - 1,700 9,500 - 1,700 8,000 - 1,700 6,000 - 1,700 4,000 - 1,700 3,000 - $27,000 -2,900 -2,900 - 2,900 8,000 5,000 2,000 6. A certain building has an old heating system. Annual cost of heating the building is currently $30,000 on average. An energy consultant estimates that the heating bill can be reduced to $5,000 a year if $41,000 is invested to convert the old heating system to a new one. If the new heating system is adopted, there will be an extra maintenance fee of $4,000 each year. Both the old and new systems will have a zero salvage value at the end of their service lives and again both of them are expected to serve for a maximum of 12 years starting from now. What is the net annual equivalent worth for this investment in the new heating system, assuming a MARR of 14%? The annual net worth of installing the new heating system is $ (Round to the nearest dollar.)