4. Company INDE is considering the Projects that have the following costs. Company INDE has a standard practice of evaluating all projects over a 5-year period. If a study period of 5 years and MARR is 5 % , what is the value of present worth analysis for project A? & Project A & Project B First cost P, S & 15000 & 18000 Annual Operating Costs, S year & 3500 & 3100 Salvage Value, S & 1500 & 4000 Life, years & 6 & 9 a) 28985 b) 31568 c) 34529 d) 29863 e) 27336

To calculate the present worth (PW) of Project A over a 5-year period with a minimum attractive rate of return (MARR) of 5%, we need to discount the cash flows of Project A to their present values and sum them up.The formula for calculating the present worth is: Where:- is the cash flow at time - is the discount rate (MARR)- is the time period- is the total number of periodsFor Project A, the cash flows for each year are as follows:Year 0: 10,000Year 2: 20,000Year 4: 30,000Using the discount rate of 5%, we can calculate the present worth for Project A: Calculating the present worth: Therefore, the present worth analysis for Project A is approximately $93,845.33.