3. A graphical method of describing events that are uncertain --. The amount ofchange inthe ouiput coopared toth, charge in the pvi. The likelihood of an event occurring among the total possible mumber of events The probability of a project or investment not moeting the desired outcome Converting all project and investment costs and revenues to an annual basis for 7. comparison with other annual costs for the altermative investmem The ratio of profit to the total investment The specific increases in price of a good or service over time 9. : Money at one time period can be made equal to money at other time period. Drawings representing the flows of money into and out of the project or investmenn Changing the values of the inputs to see the effect on the output conditions. 12, 13. :The actual price (value), when an asset is sold. Purchasing the use of the equipment without owning the equipment 15 The interest to make the value of the investment costs equal to the values of its revenues when both are mcasured at the same point in time. Part II-A. Multiple Choice Question 1. (5 points) Ms Peggy wants to purchase a house for $400,000 with $$0,000 down payment from the deposit money in bank's savings account. She plans to have a 18 year mortgage with an interest of 4% what is her monthly amount for loan repayment (by using approximation)? [Tip: Approximation means getting A (annual value) divided by 12 to get monthly value) 36,000 a. 2, 104 b. 2,204 c. 2,304 d. 2,404 00333 2. (5 points) Mr. & Mrs. Brown deposit $500 per year into a college fund account for their son, William, starting on his first birthday and continuing through his 19h birthday. Then there are four withdrawals (once in a year for four years) from the account to pay for college expenses. If the fund earns 12%, what is the value of withdrawal amount? a. 10,444 b. 11,444 c. 12,567 d. 13,698 .12 3. (5 points) The Highway Department expects the cost of maintenance for a piece of heavy construction equipment to be $1,000 in year l, to be S4.300 in year 2, and to increase annually by S300 through year 10. At an interest of 8% per year, determine the present worth of 10 years of maintenance costs a. 30,333 b. 32,114