1. Your company has been presented with an opportunity to invest in a project. The facts on the project are presented below: Investment required Salvage value after 10 vears Gross income expected from the project Operating costs $60,000 None $20,000/year Labor Materials, insurance, etc Fuel and other costs Maintenance costs $2,500/year $1,000/year $1,500/year $500/year This project is expected to operate as shown for 10 years. If your management expects to make 25% on its investment before taxes, would you recommend this project? 2. The winner of a sweepstakes prize is given the choice of one million dollars or the guaranteed amount of $81,000 a year for 20 years. If the value of money is taken at 12% interest rate, which choice is better? 3. Given the following three mutually exclusive alternatives, which alternative is preferable if 10%? Alternative Initial cost Annual benefits Useful life (years $50$30 $40 10 35 2 15