A manufacturer is considering purchasing composite wing fixtures for the assembly of its signature aircraft. The cost of the assembly system is $3 million with life expectancy of 10 years, annual operating cost of $200,000 with zero salvage value. MAC anticipates a stream of $1,000,000 in revenue per year for 10 years from this project. Using annual worth analysis and assuming MAC uses a MARR of 10 percent, is this investment economically justified? What is the Net Annual Cash Flow?

A) $800,000

B) $855,000

C) $750,000

D) $900,000

And what is the annual worth of the said project

A) $311,750

B) $320,322

C) $302,544

D) $331,650