Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $75,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Annual labor costs would increase $2,500 using the gang punch, but annual raw material costs would decrease $13,000. MARR is 4.75%/year. 1. What is the present worth of this investment? 2. What is the decision rule for judging the attractiveness of investments based on present worth? a. if PW > 0, accept; otherwise reject b. if PW<0, accept; otherwise reject c. none of the above 3. Should Bailey buy the gang punch? yes/no