2. (a) Compare the following using annualized worth and choose the best solution: (A) Initial Cost 600,000 Increased Net Revenue 5,0000 Salvage Value 60,000 1-3% Planning Horizon is 10 years. Initial Cost 800,000 Increased Net Revenue 60,000 Salvage Value 100,000 1-6% Planning horizon is 5 years (B) (b) The initial cost of project A is 400,000. Its Salvage value decreases linearly over time to 40,000 at t 10. The yearly revenue increases from 80,000 per year at t 1 by 5000 each year. Yearly expenses are always 35,000. The interest rate is 6% and the planning horizon is 10 years. what is the Present Worth of this system? (c) The yearly maintenance for an office building costs 200,000. In addition, continual upgrading costs occur in a five-year cycle. The first year is 300,000. Each year after that an additional 100,000 is needed. i.e. first year 300,000 second year 400,000 third year 500,000 fourth year 600,000 fifth year 700,000. The cycle then repeats itself. Forever, what is the capitalized cost of this system? 6%