1. A small detergent company is planning to purchase a 1000 gallon reactor. The manufacturer of the reactor agrees to sell the equipment for $65,000 cash or a down payment of $10,000 with 50 monthly payments of $1,500. The company can borrow money from bank with an interest rate of 12% compounded monthly. What interest rate is the manufacturer of the reactor is charging? Should the company purchase the reactor by borrowing money from the bank (paying cash to the manufacturer) or by selecting the installment plan? What monthly payment will the company has to pay if the money is borrowed from the bank (for 50 months)? 2. A chemical company constructed a plant in Tuskegee in 2019. The fixed capital investment was 15 million dollars. In the first year of operation (2019), the company produced 500,000 tons of a product with a selling price of $35 per ton. The operating cost was $5 per ton of product. Estimate the net profit after taxes, if the company used MACRS depreciation method. 3. Fixed capital investment cost for a 200 million pounds of product per year plant is estimated at $ 25 million with no salvage value. From the preliminary design calculations, the following costs per pound of product were determined Raw materials 10 cents per lb. Utilities 1.5 cents per lb. Labor 1.75 cents per lb. Other costs 2.0 cents per lb. The selling price of the product is 30 cents per lb. The company uses straight line depreciation method. Determine the net profit after taxes for the first year of operation (2020). 4. A company borrows $50,000 at an annual interest rate of 6%. The company wishes to pay off the debt in 5 years by making equal payments at the end of each year. How much will each payment have to be