Final answer:
To make the NPW of both projects equivalent, the annual savings of Bid A would need to be $0.10 M.
Step-by-step explanation:
To equate the NPW (Net Present Worth) of both projects, we need to find the annual savings of Bid A that would make the two projects equivalent. To do this, we calculate the NPW of both projects and set them equal to each other. Based on the given information, the NPW of Bid A is $17.4 million, and the NPW of the other project is $51.3 million. Let's assume the annual savings of Bid A is X million dollars. Setting up the equation, we have:
$17.4 million = X/(1+0.15)^1 + $51.3 million/(1+0.15)^2
Simplifying and solving for X, we find that the annual savings of Bid A would need to be $0.10 M (million) for the two projects to be equivalent.