Chapter 5 Present Worth Analysis D-68 A project is being considered that has a first cost of $12,500, creates $5000 in annual cost savings, requires $3000 in annual operating costs, and has a salvage value of $2000 after a project life of 3 years. Appendix D: Problems 667 If interest is 10% per year, which formula calculates the project's present worth? (a) PW = 12,500(P/F, 10%, 1) + ( 5000+3000) PA, 10%, 3) - 2000(F/P, 10%,3) (b) PW = -12500 + (5000 3000) P/A, 10%, 3) -2000P/F, 10%,3) (c) PW = 12,500F/P, 10%,3) + (5000 3000) (F/A, 10%,3) + 2000 (d) PW = -12,500 + 5000P/A, 10%,3) - 3000 (P/A, 10%,3) + 2000P/F, 10%,3)