Make sure the cash flow diagrams are drawn out. Thank you

1. Twenty thousand dollars are invested in an account that pays 18% per year compounded monthly. Show your work where applicable. (25 points) a. What is the APR? D. What is the nominal interest rate? c. What is the effective interest rate? d. What is the account balance after 5 years? EC: Explain the difference between APR, nominal interest, and effective interest. (3 points) 2. A $250,000 manufacturing company's fabrication machine has a useful life of 11 years, at which point, it is sold for $13,000. It requires a $27,000 refurbishment at year 7. but it makes the company $92,000 in year 1, and increases by $1,250 every year thereafter. To keep it running smoothly. $16,000 is spent on it every year. Draw a cash flow diagram (30 points) EC: Explain why cash flow diagrams depend on the individual's perspective. (2 points) 3. A company has a choice of two different lathes. If the interest rate is 8%, using present worth analysis, determine the preferred lathe. Draw cash flow diagrams, show your work, and make a statement to receive full credit. (45 points) First Cost Annual O&M Annual Revenue Salvage Value Useful Life Lathe 1 $10.000 $2,200 $5,000 $2,000 3 years Lathe 2 $15.000 $4,300 $7.000 $0 10 years EC: Compare and contrast present, annual and future worth analysis. (2 points)