1. Given:

	Alternative I	Alternative J
Initial Cost	150,000	250,000
Annual Income	20,000	40,000
Annual Expenses	9,000	14,000
Salvage value	25,000	35,000
Life, years	3	6
The interest rate is 15% per year

a) In the comparison of alternatives I and J with the present value method, the value of n to be used in 11,000(P/A,i,n) for alternative I is: 

b)When comparing alternatives I and J with the present value method, the equation that generates the present worth of alternative J is: