Aerotron Electronics is considering the purchase of a water filtration system to assist in circuit board manufacturing. The system costs

$$220,000.$ It has an expected life of $7$ years at which time its salvage value will be $$7,500.$ Operating and maintenance expenses are

estimated to be $$13,000$ per year. If the filtration system is not purchased, Aerotron Electronics will have to pay Bay City $$42,000$ per

year for water purification. If the system is purchased, no water purification from Bay City will be needed. Aerotron Electronics must

borrow $\frac{1}{2}$ of the purchase price, but they cannot start repaying the loan for $2$ years. The bank has agreed to $3$ equal annual payments,

with the $1$ st payment due at the end of year $2.$ The loan interest rate is $8\%$ compounded annually. Aerotron Electronics' MARR is $10\%$

compounded annually.

Part a

What is the annual worth of this investment? $