The engineering team at Manuels Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs $380,000 initially and is expected to increase revenue $125,000 per year every year. The software and installation from Vendor B costs $280,000 and is expected to increase revenue $95,000 per year. Manuels uses a 4-year planning horizon and a 10 percent per year MARR.
What is the annual worth of each investment?