1. Fishbone Corporation bought a new machine and agreed to pay for it in equal annual installments of $4,250at the end of each of the next10years. Assuming that a prevailing interest rate of9% applies to this contract, how much should Fishbone record as the cost of the machine?(Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

2.Dubois Inc. has $605,700to invest. The company is trying to decide between two alternative uses of the funds. One alternative provides $90,267at the end of each year for10years, and the other is to receive a single lump-sum payment of $1,571,028at the end of the10years. Which alternative should Dubois select? Assume the interest rate is constant over the entire investment.