Merry Industries is considering a new piece of equipment for a project lasting 10 years with details as shown below. The costs and benefits are expected to keep increasing with the inflation rate even when a new machine is put into operation. Taking these into account, what is the annual worth that the company can expect from the machine?

Initial cost	$65,000
MARR	12%	p y c y
Inflation rate	3%	p y c y
Life	7	years
Project life	10	years
Machine value today with life of 3 years	$24,500
Machine value today with life of 7 years	$13,500
First year costs	$7,200
First year benefits	$25,800