A company invested capital of $6,000,000 on an engineering fabrication that ensure a revenue of $2,900,000 each year for five years. His equipment, with a life of five years, will have a trade-in...

A company invested capital of $6,000,000 on an engineering fabrication that ensure a revenue of $2,900,000 each year for five years. His equipment, with a life of five years, will have a trade-in value of $600,000. The cost of operation and maintenance will be $1,200,000 per year. Taxes and insurance will be 2% of the first cost per year. He expects his capital will earn not less than 15%. Is the investment justifiable?

Solve by
a.) Rate of Return Method
 b.) Annual Worth Method   and
c. ) Present Worth Method