4. Some equipment will be installed in a warehouse that a firm has leased for seven years. There are two alternatives: Cost $1,000 $1,500 Uniform Annual Benefit $550 $610 Useful life, years 3 4 At anytime after the equipment is installed, it has no salvage value. Assume that Alternatives A and B will be replaced at the end of their useful lives by identical equipment with the same costs and benefits. For a seven-year analysis period a 10% interest rate, use an annual cash flow analysis to determine which alternative should be selected? (20 pts) 5. Peter Minuit bought an island from the Manhattoes Indian in 1626 for $24 worth of glass beads and trinkets. The 1991 estimate of the value of the land on this island was $12 billion. What rate of return would the Manhattoes have received if they had retained the title to the island rather than selling it for $24? (10 pts) 6. Is economic feasibility a relevant factor when options for the control and disposal of hazardous wastes are being considered? How heavily should economic feasibility be weighted, and against which other factors (e.g., engineering and geotechnical feasibility, length of time until probable failure, maintenance requirements, human and eco-system health risks,...)? (15 pts)