Final answer:
The annual worth of the investment is approximately $8.327 million.
Step-by-step explanation:
To determine the annual worth of the investment, we need to calculate the present value of the cash flows using the MARR of 18 percent/year.
The present value can be calculated using the formula:
PV = CF1/(1 + r) + CF2/(1 + r)^2 + CF3/(1 + r)^3 + ... + CFn/(1 + r)^n
where PV is the present value, CF is the cash flow for each year, r is the MARR, and n is the number of years.
Using this formula, the annual worth of the investment is:
PV = -12/(1 + 0.18) + (-1)/(1 + 0.18)^1 + 5/(1 + 0.18)^2 + 2/(1 + 0.18)^3 + 5/(1 + 0.18)^4 + 5/(1 + 0.18)^5 + 2/(1 + 0.18)^6 + 5/(1 + 0.18)^7
After evaluating the above expression, the annual worth of the investment is approximately $8.327 million.