An RV manufacturer estimates that annual profits will increase if a mobile model is built and taken to trade shows to market their product line. A finance and engineering team has looked at the issue and has developed two options A large model can be developed at a cost of $70,000, and it should increase annual profits by 30,000 per year A small model can be developed for $55,000, but it will only increase annual profits by $12,000 per year 1. 2. The salvage value for the large model is $5000 more than the small model after their common useful life of 5 years, and it costs $1000 more a year to transport to the trade shows. The manufacturer uses an interest rate of 20%. Use an annual worth comparison to make a recommendation on which, if either, operation should be chosen