1) You purchase a home for $188,000 that you expect to appreciate 8% in value on an annual basis. How much will the home be worth in ten years?

Factors to use for n=10, I =8% (DO NOT USE ANY OTHER FACTORS OR EQUATIONS) Future Value of $1 2.15892

Future Value of an Annuity of $1 14.48656 Present Value of $1 0.46319 Present Value of an Annuity of $1 6.71008

2) ABC Inc is considering a new project that requires an initial investment of $36,390 and will generate a net income of $5,710 per year, if the projects profitability index is 1.3, the present value of the projects future cash flows is $________________ Round to the nearest dollar.

3.) Abbys standard labor cost of producing one unit of Product One is 1.8 hours at a rate of $11.4 per hour. During September, 1,421 hours were incurred at a cost of $12.6 per hour to produce 1,140 units of Product One.

Abbys direct labor efficiency variance is $__________

Indicate the amount and whether it is Favorable or Unfavorable by placing F or U by amount, do not skip a space and do not use $ in your answer. For example, if your answer is $1,000 favorable, answer 1000F. Show your answer as an absolute number (no negative signs)