You are considering the following project for investment:

Investment (now) = $18,000

Annual revenues = $6,000 per year

Annual expenses = $2,000 per year

Study period = 10 years

MV at end of study period = $1,000

A) Use the AW method to decide if you recommend this project for investment.The company's MARR = 15% per year

B) Suppose it is discovered that an additional maintenance of equipment is needed at the end of year 5.

Maintenance Cost at end of year 5 only = $5,000 (this is in addition to the annual expenses).

Use the AW method to see if including this cost changes your recommendation in Part (A).