-54 Company A has fixed expenses of $15,000 per year, and each unit of product has a $0.20 vari- able cost. Company B has fixed expenses of $5,000 per year and can produce the same prod- uct at a $0.50 variable cost. At what number of units of annual production will Company A have the same overall cost as Company B? Sunk and Other Costs 1-57 Heinrich is a manufacturing engineer with the Miller Company. He has determined the costs of producing a new product to be as follows: Equipment cost: $288,000/year Equipment salvage value at EOY5: $41,000 Variable cost per unit of production: $14.55 Overhead cost per year: $48,300 If the Miller Company uses a five-year plan- ning horizon and the product can be sold for a unit price of $39.75, how many units must be produced and sold each year to break even? A $5,000 loan was to be repaid with 8% simple annual interest. A total of $5,350 was paid. How long had the loan been outstanding? 3-7 3-31 A sum of money Q will be received six years from now. At 5% annual interest, the present worth of Q is $60. At the same interest rate, what will the value of Q be 10 years from now? 3-62 First Bank is sending university alumni invi- tations to obtain a credit card, with the name of their university written on it, for a nominal 9.9% interest a year after six months of 0% interest. These interest rates apply to the out- standing debt if it is not paid by a specified date each month, and interest is compounded monthly. If you fail to make the minimum payment in any month, your interest rate could increase (without notice) to a nominal 19.99% a year. Calculate the effective annual interest rates that First Bank is charging in each case. 4-71 A set of cash flows begins at $20,000 the first year, with a decrease each year until n = 10 years. If the interest rate is 8%, what is the present value when (a) the annual decrease is $2,000? (b) the annuai decrease is 10%? 4-93 What is the present worth of a series of equal quarterly payments of $3,000 that extends over a period of eight years if the interest rate is 10% compounded monthly