Exercise No. 1 A certain asset with an initial cost of $800,000.00, has an estimated useful life of 3 years, and an estimated salvage value of $200,000.00 and operation and maintenance costs of $25,000.00. If the interest rate is 36% per year, what will the equivalent uniform annual cost be?

Exercise No. 2 Calculate the CAUE of machinery that has an initial cost of $15,000 and a salvage value of $2000 after 9 years. The annual operating costs (CAO) for the machine is estimated at $1200 and the interest rate is 25% per annum.

Exercises No. 3 If an investor deposits $30,000 today, at an interest rate of 9% per year, how many years must the money accumulate before he can withdraw $2,200 per year indefinitely?