1.Longhorn Energy is planning a $340 million expansion of two major pipelines in Texas. The Austin-based pipeline company will add 56 miles of 36-inch pipeline and 20,000 horsepower of compression. The expansion will increase the capacity of the Katy pipeline in southeast Texas to more than 1.1 billion cubic feet per day from 700,000 million cubic feet per day. Net revenue per cubic feet is $1.25 and the pipeline is expected to have a resale value of 28 million at the end of the year 38. Determine the capital recovery cost of this investment if the minimum attarctive rate of return is 14% per year.

2.Miner's Mexican Grill Inc. plans to open its 100th restaurant by the end of next year. The new restaurant will require an initial investment of $300,000 and an annual operating cost of $31,000. It will have a $62,000 salvage value after 6 years. The company also estimates that the new restaurant will bring in revenue of $43,400 each year. Calculate the annual worth of the investment if the company's minimum attractive rate of return is 13% per year.