Homework 1 Due: Sep 4th in class I. An investment has the following cash flow series where interest is 8% End of Year Cash Flow $300 $300 $600 $500 $300 $0 $%800 $700 $600 4 a. Find the future worth of this cash flow series using the actual cash flows b. Find the present worth of this series using the actual cash flows c. Find the present worth using the future worth d. Find the worth of the series at the end of year 2 2. The KMP Metal Machining Company produces widgets according to customer order. The company has determined that widgets can be produced on three different machine tools: M1, M2, or M3. An analysis of widget production cost reveals the following data Machine Tool M1 M2 M3 Fixed Cost/Order $300 $750 $500 Variable Cost/Unit $9 $3 $5 a. For an order of size 75, which machine tool should be used to produce the order, and what is the total production cost? For an order of size 160, assume that the preferred (most economical) machine is unavailable. What penalty (expressed in dollars of additional production cost) must be paid if the second most economical machine is used? The third? b