Present Worth Analysis The objective is to choose the alternative with the greater PW over the planning horizon Case \#1: Equal useful lives: An amusement park wants to decide over two new designs for a new ride. Design A will require an investment of $300,000 and is estimated to produce $55,000 revenue annually over a 10 year-planning horizon. It will also require annual maintenance that is estimated to be $5000 for the first year, increasing by $500 per year. Design B will require an investment of $450,000 and is expected to generate annual revenue of $80,000. Maintenance costs will be $5000 for the first year, increasing by $250 each year. After the 10 year planning horizon, a negligible salvage value is assumed for both designs If the company has set the MARR (Minimum Attractive Rate of Return) at 10%, determine which is the best alternative Present Worth Analysis Case \#2: Unequal useful lives - A construction engineer has been asked to recommend an excavator for acquisition. Three alternatives have been identified