1)Consider the following two tractors a company can purchase. The following tables provide the costs the company will incur (in thousands of dollars) in the lifetime of each tractor. Initial Cost Operating Costs per Year Expected Life Diesel $15,000 $6,000 6 Gasoline $6,000 $12,000 3 The transportation firm can only afford one of the tractors. The two tractors have identical production capabilities. The firm's cost of capital is 7%. Find the present value of the costs of using the two tractors. Diesel = Gasoline = Click "Verify" to proceed to the next part of the question. This question has 3 parts (i.e., you will need to click "verify" three times)

2)Because of its age, your car costs $11,000 annually in maintenance expense. You could replace it with a newer vehicle costing $7,900 that would be expected to have a life of 5 years. If your opportunity cost of capital is 14%, by how much must maintenance expense decrease on the new vehicle to justify its purchase?

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(please round your final result to 2 decimals, but keep as many decimals as possible during calculation)

3)

Ocean Park Properties is evaluating a real estate investment of Lakeview Estates. Management plans to buy the property today and sell it 9 years from today. The initial cost of the property is $16 million and the expected sale price is $66 million. What is the IRR of the investment? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include the percentage sign in your answer.

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