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TATE courses ZUZU ZUZI A firm will choose one of two projects. Both projects have useful lives of 10 years. Project A has an initial

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TATE courses ZUZU ZUZI A firm will choose one of two projects. Both projects have useful lives of 10 years. Project A has an initial cost of $12.000 annual fuel cost of $500 per year, maintenance cost of $100 at the end of year 1 that increases by $25 per year thereafter, a salvage value of $1,200, and annual benefits of $2,300. Project B has an initial cost of $18,000, annual fuel cost of $400 per year, maintenance cost of $100 at the end of year 1 that increases by 10% per year thereafter, a salvage value of $2,500, and annual benefits of $2,500. Evaluate the present worth using an interest rate of 12 percent, compounded annually. Express your answers to the nearest dollar. 1. (a) (1 p.) What is the present value of the fuel cost for Project A (S)? 2. (b). (1 p.) What is the present value of maintenance cost for Project A (S)? 3. Ic). (1 pt.) What is the present value of the salvage value for Project A (S)? 4. Id). (1 pt.) What is the present worth of annual benefits for Project A (51? 5. (e). (1 pt.) What is the present worth of project A ($)? 6. (f): (1 p.) What is the present value of the fuel cost for Project B (817 7. lg. (1 p.) What is the present value of the maintenance cost for Project B (SI? 8. th). (1 pt.) What is the present value of the salvage value for Project B (5)? 9. (1 pt.) What is the present worth of the annual benefits for Project B (5)? 9.0 (1 pt.) What is the present worth of the annual benefits for Project B (5)? 10.0) (1 pt.) What is the present worth of Project B (S)? 11. (k) (1 pt.) Suppose that Project A has a present worth of $1.294 and that project B has a present worth of $1,105 (these are not the correct answers to prior parts of the problem), which project is preferred

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