1- ACME Confetti Corporation needs to finance $20 million for a plant expansion building project. They've decided to issue common stocks to finance the entire project. How many shares do they need to issue to cover the cost of the project plus all floatation costs (7% of issue price). ASSUMPTION: Issue price is $50 per share. Assets can cover the value of the share price and floatation costs. a. 379,940 b. 465,000 c. 430,108 d. 383,652

2- A community wants to create a park on some vacant property on the outskirts of the town (zoned commercial). They estimate the benefit to the community to be worth $1,500,000.00. Contractors have estimated a net cost to build the park and to rezone the property to be $2,300,00.00. What is the benefit/cost ratio and does it indicate if they should build the park? a. 0.65 and Yes b. 0.65 and No c. 1.53 and Yes d 1.53 and No

3- ACME is investigating the need to replace a combined water filtration pump and motor set (defender) with a more efficient running one (challenger). The market price for the existing pump is $20,000.00, It's remaining useful life is 3 years where its salvage value is $5,000.00. The O&M costs are $4,000 per year. The new pump/motor set (challenger) costs $30,000.00 with a 3 year useful life and a $11,000.00 salvage value. It's O&M costs are $3,000.00 per year. The MARR for this company is 12%. What is the favorable Annual Equivalent Costs between the two scenarios? a. $26,048 b. $12,229 c $29,376 d. $10,844

4- Referencing question 18, which device should we keep (Defender or the Challenger)? a. Defender b. Challenger

5- What is the current Consumer Price Index for All Urban Consumers (CPI-U) as of March 2017? a. 100 b. 2.4 c. 243.801 d. 238.132

6 - A company buys a pickup truck for $25,000. Each year the truck is in service the trade in value decreases by 20%. Maintenance on the truck will run $2,000 per year while increasing by 15% each year it is in service. The company uses an MARR of 12%. Find the Annual Equivalent Cost for the second year. a. 9386.87 b.5325.30 c.7245.30 d.6325.30