a) (4 points) A garage is comparing the cost of buying two different car hoists. Hoist A will cost $20,000, will require servicing of $500 every year, and last ten years. Hoist B will cost $15,000, require servicing of $800 per year, and last eight years. Suppose the cost of capital is 7%. The equivalent annual annuity of Hoist A is $ . The equivalent annual annuity of Hoist B is $ State your answer in the nearest integer, absolute value. b) (4 points) An investor has a budget of $30 million. He can invest in the projects shown below. Initial Investment Future cash inflow Project A $21 million $12 million per year for three years Project B $18 million $9 million per year for three years Project C $15 million $6 million per year for six years Project D $12 million $4.5 million per year for eight years Suppose the cost of capital is 5%. Rank the above projects according to the profitability index (PI). Rank 1 refers to the highest priority and Rank 4 refers to the lowest priority. According to PI, Project A is ranked No. Project B is ranked No. Project C is ranked No. Project Dis ranked No