1) Assume a machine costs $50,000 and generates cash flows of $25,000 each year for 3 years. What is the equivalent annual annuity (EAA) if the required rate of return is 5 percent?

Group of answer choices

$6323.40

$50,200.00

$17220.19

$65,714.29

$62,764.36

2) The Short Stack expects to sell 8,000 units, 2 percent. The expected variable cost per unit is $8,3 percent, and the expected fixed costs are $20,000, 1 percent. The depreciation expense is $6,000. The sale price is estimated at $23 a unit, 2 percent. What is the fixed cost under the optimistic case scenario?

Group of answer choices

$20,000

$83,760.33

$19,800

$20,200

$197,335.20

3) DK Markets expects a new project to produce sales of 9,600 units, 8 percent. The expected variable cost per unit is $17 and the expected fixed costs are $47,000. Cost estimates are considered accurate within a range of 3 percent. The depreciation expense is $24,600. The sale price is estimated at $39 a unit, 2 percent. What is the sales revenue under the pessimistic case scenario?

Group of answer choices

$344,448.00

$374,400.00

$300,000.00

$350,000.00

$337,559.04