1. What is the present value of $1000 per year annuity for five years at an interest rate of 14%? Hint: The future value is zero. This is 5 recurring payments. The answer is closest to:

Group of answer choices

$3,433.08

$6,352.85

None of the above

$3,604.78

2.

Capital equipment costing $250,000 today has 50,000 salvage value at the end of 5 years. If the straight line depreciation method is used, what is the book value of the equipment at the end of two years?

Group of answer choices

$50,000

$200,000

$140,000

$170,000