1)Calculate the discounted payback period of a project with a discount rate of 7% and these cash flows:

Period 0: -1000 Period 1: 766 Period 2: 109 Period 3: 1448 Answer in years round to the nearest hundredth.

2) Find the crossover rate of projects A and B Year Project A Project B 0 -1250 -475 1 1100 350 2 375 200 Enter your answer in percent and round to the nearest 0.01%.

3) Machinery costs $1 million today and $100,000 per year to operate. It lasts for 2 years. What is the equivalent annual annuity if the discount rate is 7%? Enter your answer in dollars and round to the cent. Remember that costs are negative cash flows; so, include the negative sign.