Don West is considering buying a pickup truck at a cost of $30,000. He is planning to keep the truck for four years and is hoping that the truck will sell for $10,000 at the end of year 4. He estimates that the insurance, property tax, and maintenance costs will be $2,000 in year 1 and gradually increase every year by $1,000. The equivalent uniform annual cost of this truck at 9% interest rate is __. A. $9, 177 B. $8, 500 C. $10, 467 D. $9, 612 Kal Tech Engineering is investigating the possibility of acquiring new automated packaging equipment at a cost of $12.000. It is expected that the equipment will have a salvage value of $1,000 at the end of its useful life of 10 years. It is determined by the plant engineering department at the company that the operation and maintenance cost will be $500 in the first year and will gradually increase every year starting year 2 at the rate of $50 until the equipment is retired. Determine the equivalent uniform annual cost (EUAC) if MARK for the company is 10%. A. $2, 150.50 B. $2, 176.60 C. $2, 184.40 D. $2, 575.95 TRUE/FALSE To choose the best alternative among the given alternatives in the annual cash flow analysis method, it is necessary to compute the EUAW for each alternative over a period of one cycle only. True/False An endowment of $1,000,000 M has been setup to fund ten engineering scholarships every year in a state university in Tennessee. If the endowment is expected an earn 9% rate of return, the amount of scholarship that can be given from year 2 is $9,000. True/False An investment of $10,000 today, will pay 6 yearly payments of $2, 500 each. Determine the rate of return on this investment to the second decimal place. A. 14.79% B. 15.01% C. 14.06% D. 12.98% Compute the rate of return for a project that has an initial cost of $40000 and would provide positive cash flows of $6,000 the first year. $7,000 the second year, $8,000 the third year, $9,000 the fourth year, $10,000 the fifth year, and $11,000 the sixth year. A. 6.30% B. 7.46% C. 7.04 D.6.70%