1) A payment of $18,000 4 years from now is equivalent, at 10% interest, to an annual payment for 7 years starting at the end of this year. The equivalent uniform annual payment is closest to

2) The maintenance expense on a piece of machinery is estimated to be $175 in the first year and is to increase by $100 every year thereafter until year 7. If the interest rate is 7%, the approximate equivalent uniform annual maintenance cost for 7 years is

3) An engineer must choose between two technically equivalent alternatives, A and B. Based upon the data in the table below and an interest rate of 8%, which alternative should be selected?

	A	B
First Cost	$1,500	$3,000
Annual Maintenance	$300	$500
End of Useful Life Salvage Value	$400	$900
Useful Life	10 years	12 years