1. Problem Statement: Aerotron Electronics is considering purchasing a water filtration system to assist in circuit board manufacturing. The system costs $32,000. It has an expected life of 7 years at which time its salvage value will be $5,000. Operating and maintenance expenses are estimated to be $2,000 per year. If the filtration system is not purchased, Aerotron Electronics will have to pay Bay City $13,000 per year for water purification. If the system is purchased, no water purification from Bay City will be needed. Aerotron Electronics must borrow 1/2 of the purchase price, but they cannot start repaying the loan for 2 years. The bank has agreed to 3 equal annual payments, with the 1st payment due at the end of year 2. The loan interest rate is 8.5 % compounded annually. Aerotron electronics' MARR is 12.5 % compounded annually. a. What is the present worth of this investment? (Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +10.) b. What is the decision rule for judging the attractiveness of investments based on present worth? C. Should Aerotron Electronics buy the water filtration system