A project is being planned that has an initial investment at time 0, annual revenues and expenses, and a salvage value at the end of the project lifespan (20 years). The financial values are summarized below: 

Initial investment amount at time 0 $150,000 

Estimated annual revenue $34,500 per year

Estimated annual expenses $8,700 per year 

Estimated salvage value at end of lifespan $10,000.  

Minimum attractive rate of return (MARR) 15% 

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a. Calculate the capital recovery amount CR(i%).
b. Using the annual worth (AW) method, determine whether purchasing the equipment is economically justified.
c. Repeat part (a) using the internal rate of return (IRR) method based on annual worth (AW).