1) Snyder Company is considering purchasing equipment. The equipment will produce the following cash inflows: Year 1, $30,000; Year 2, $35,500; and Year 3, $44,000. Snyder requires a minimum rate of return of 10%.

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(For calculation purposes, use 5 decimal places as displayed in the factor table provided.).

What is the maximum price Snyder should pay for this equipment? (Round answer to 2 decimal places, e.g. 25.25.)

Maximum price $

2) Tim Howard has been offered the opportunity of investing $28,699 now. The investment will earn 7% per year and at the end of that time will return Tim $74,000.

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(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

How many years must Tim wait to receive $74,000? (Hint: Use Present value of 1 factor table.) (Round answer to 0 decimal places, e.g. 25.)

Tim must wait years

3) Frazier Company issues a 10%, 6-year mortgage note on January 1, 2020, to obtain financing for new equipment. Land is used as collateral for the note. The terms provide for semiannual installment payments of $47,000.

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(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

What are the cash proceeds received from the issuance of the note? (Round answer to 2 decimal places, e.g. 25.25.)

Frazier Company should receive $.