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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

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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 1. Use the AW method to decide if you recommend this project for investment. The company's MARR - 15% per year. Clearly document your solution process (which should include a statement such as "I recommend this project because calculations show that..." or "I don't recommend this project because calculations show that.."). 2. Suppose it is discovered that an additional maintenance of equipment is needed at the end of year Maintenance Cost at end of year 5 only = $4,500 (this is in addition to the annual expenses). Use the AW method to see if including this cost changes your recommendation in Part (1). Is your recommendation different? Why or why not

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