FastBits Electronic Company Sdn. Bhd. is evaluating new precision inspection devices to help verify package quality. The manager has obtained the following bids from four companies. All devices have a life of five years and a minimum attractive rate of return of 5%. The alternatives are mutually exclusive. Description Company A Company B Company Company D Initial Cost (RM) 420000 120000 510000 200000 Annual Costs (RM) 900 12000 23000 9000 Net Cash Flows (RM) 105000 33600 127500 46000 IRR 7.9% 12.4% 7.9% 4.8% Demonstrate that the same company selection would be made with proper application of the Present Worth (PW) method. PW Company A Format : 23359 PW Company B Format : 25348 PW Company C Format : 82088 PW Company D Format :-984 Thus, choose Company Format: A