1. Compute the future worth in year 10 at /-10% per year for the cash flow shown below. F=7 9 10 Year 4600 4400 4200 4000 4800 $5000 2. Compute the effective annual interest rate in each of these situations: a. 11% nominal interest compounded semiannually. yll buy L b. 11% nominal interest compounded quarterly. I c. 11% nominal interest compounded monthly. aylk d. 11% nominal interest compounded biweekly. 2. 3. Three different plans were presented to the GAO by a high-technology facilities manager for operating a small weapons production facility. Plan A would involve renewable 1-year. contracts with payments of $1 million at the beginning of each year. Plan B would be a 2- year contract, and it would require four payments of $600,000 each, with the first one to be made now and the other three at 6-month intervals. Plan C would be a 3-year contract, and it would entail a payment of $1.5 million now and another payment of $0.5 million 2 years from now. Assuming that the GAO could renew any of the plans under the same conditions if it wants to do so, which plan is better on the basis of a present worth analysis at an interest rate of 6% per year, compounded semiannually? 4. An engineer is considering two robots for purchase by a fiber-optic manufacturing company. Robot X will have a first cost of $85,000, an annual maintenance and operation cost of $30,000, and a $40,000 salvage value. Robot Y will have a first cost of $97,000, an annual maintenance and operation cost of $27,000, and a $48,000 salvage value. Which should be selected on the basis of an annual worth comparison at an interest rate of 12% per year? Use a 3-year study period