The data below are estimated for the project study of a certain business investment.

If money is worth 10% which of the project is more desirable, using the Present Worth Method and

also determine the difference in profit from each project study.

For A, the initial investment is P 3, 500, with annual revenue of P 1,900. Annual disbursement

amounts to P 645 with no salvage value at the end of its life which is 4 years.

For B, the initial investment is P 5,000, with annual revenue of P 2, 500. Annual disbursement is P

1383 with no salvage value at the end of its life which is 8 years.

Please use the Present Worth Method formula that is attached.