1-The capitalized cost of $10,000 every 5 years forever, starting now at an interest rate of 10% per year, is closest to:

A. $26,380

B. $16,380

C. $32,590

D.$13,520

2-A student wants to have $40,000 when he graduates 4 years from now. His grandfather gave him a gift of $15,000. How much must he save each year (to the nearest dollar) if he deposits the $15,000 today and can earn 11% on both the $15,000 and his savings?

A. $ 3558.1

B. $ 3058.1

C. $ 3608.1

D.$ 3658.1

3-Aramco must install antipollution equipment in a new refinery to meet Saudi clean-air standards. Four design alternatives are being considered, which will have capital investment and annual operating expenses as shown below. Determine which design should be selected on the basis of the FW method

A. (D1=$9,860,681 D2=$9,990,967)

B. (D1=$9,862,681 D2=$9,993,967)

C.(D1=$9,962,681 D2=$9,093,967)

4-You have decided to purchase a new car; the purchase price is $30,000. This balance can be financed by an auto dealer at 2.9% APR with payments over 48 months. Alternatively, you can get a $ 2000 discount on the purchase price if you finance the loan balance at an APR of 8.9% over 48 months. Should you accept the 2.9% financing plan or accept the dealer's offer of a $2,000 rebate with 8.9% financing? Both APRs are compounded monthly. Your goal is minimizing your monthly payment.

A. I will choose 8.9%with discount

B.I will choose the 2.9%without discount

5-The first cost of a machine is $50,000.It will have an annual operating cost of $20,000 and $5,000 salvage value after its 5-year life.At an interest rate of 12% per year, the capitalized cost of the equipment is closest to:

A. -$323,710

B. -$122,712

C. -$32,371

D.-$ -275,695