Economy questions

You must decide between two different cars. car A will cost $51,000 to buy and will have an annual operating cost of $17,000, and a service life of 4 years car B will have a first cost of $42,000 , an annual operating cost of $28,000, during its 4-year life. At an interest rate of 10% per year, car BLA O car A.B O Your father wishes to start an endowment that will provide scholarship money of $70,000 per year beginning in year 5 and continuing indefinitely. If the university earns 10% per year on the endowment, the amount your father must donate now is closest to 5-478100 $-477100 B O $-478000 CO $-488100 DO Ten years ago, an investor purchased a project for $265,000 .He anticipated a salvage value of $60,000 after 10 years. During this time, his average annual revenue totaled $52,000. (a) Did he recover his investment and a 12% per year return? Assume the annual M&O cost was $10,000 the first year and increased by a constant $1000 per year. The recovery cost is closest to: 43181 AO -43481 .BC -43081 CO 43281 .DO 10 Ten years ago, an investor purchased a project for $295,000 . He anticipated a salvage value of $60,000 after 10 years. During this time, his average annual revenue totaled $52,000. (a) Did he recover his investment and a 12% per year return? Assume the annual M&O cost was $10,000 the first year and increased by a constant $1000 per year. The recovery cost is closest to: -47790 AO 48990 BO 48790 CO 48890 DC A present cost of $ 200,000 annual costs of $25,000, and periodic costs every 5 years of $65,000. Use an interest rate of 12% per year. The capitalized cost is closest to -493597 .A O $-499597 .B O $-491597 .CO $-490597 .D O You must decide between two different cars. Using an interest rate of 8% per year, the PV of car B is closest to car A car B first cost -32000 -20000 annual operating cost 4000 -3500 salvage 4000 2000 life , years 3 6 $ -56414 .A $-54414.B O $ -55414 .CO $ -55014 .D O You must decide between two different cars. Using an interest rate of 10% per year, the PV of car A is closest to car A Car B first cost -35000 -53000 annual operating cost -5000 -2000 salvage value 7000 9000 life 3 years 6 years 5-73861.4 .A O $-71861.4 .BO $-72861.4 .CO $-70861 4 .D