Example: Present Worth Analysis Initial cost $25,000 $15,000 F to P (P/F, i,n) Yearly maintenance cost 2,000 4,000 Rebuilding at end of third 3,500 year (PIA,i,n) A to P P A (1+i) Salvage value 3,000 Annual benefit from better quality production 500 Example: Present Worth Analysis Initial cost $25,000 $15,000 F to P (P/F, i,n) Yearly maintenance cost 2,000 4,000 Rebuilding at end of third 3,500 year (PIA,i,n) A to P P A (1+i) Salvage value 3,000 Annual benefit from better quality production 500