**Comparative Investment Analysis of Two Projects**Tempura, Inc. is evaluating two potential projects. The details of each project are provided below:### Project A:- **Investment Required:** $54,000- **Estimated Annual Receipts:** $23,000 for 20 years- **Estimated Annual Costs:** $12,500- **Net Annual Receipts:** $23,000 - $12,500 = $10,500### Project B:- **Investment Required:** $77,000- **Estimated Annual Receipts:** $31,000 for 20 years- **Estimated Annual Costs:** $18,000- **Net Annual Receipts:** $31,000 - $18,000 = $13,000Both projects have:- **Zero Salvage Value at the end of 20 years**- **Minimum Acceptable Rate of Return (MARR):** 9.5% per year**Objective:**Calculate the present worth (PW) of each project using the provided TVM Factor Table Calculator and given MARR.**Procedure:**1. Click on the provided link to access the TVM Factor Table Calculator.2. Input the relevant data for Project A and Project B.3. Calculate the present worth of the net annual receipts for each project considering their initial investments and MARR.### Question:What is the present worth of each project?- **Project A: $**- **Project B: $****Note:**Carry all interim calculations to 5 decimal places and round the final answer to the nearest dollar. The tolerance for the answers is ±20.**Feedback:**Your answer is incorrect. Please revise the calculations and attempt again.

Answered: Image /qna-images/answer/84908117-27ac-491e-97b7-4e3f16cea220.jpg

Answered: Tempura, Inc., is considering two…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Chevron Phillips (CP) has put into place new laboratory equipment for the production of chemicals: the cost is $1,860,000 installed. CP borrows 39% of all capital needed, and the borrowing rate is 11.0%. In the 1st year, 23% of the principal borrowed will be paid back. The throughput rate for in-process test samples has increased the capacity of the lab, saving a net of $X per year. In this 1st year, depreciation is $340,000 and taxable income is $312.000. Click here to access the TVM Factor Table Calculator Click here to access the MACRS-GDS table. Part a 8 Your answer is incorrect. What is the gross income or annual savings $X? $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±50.
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