NO EXCEL PLEASE!

1) Juan makes a loan of $ 2,500. If you make 12 payments of $ 236.41 per month to repay the loan, determine: the monthly interest rate, the annual nominal interest rate and the annual effective interest rate.

2) A pharmacist is evaluating two alternatives for the purchase of equipment for the production of a drug. Considering a planning horizon of 10 years, and through an analysis of the incremental internal rate of return, determine which of the two alternatives should be selected if the company is interested in a MARR of 12%.

Parameters	Gas	Electric
Initial Cost	$2,500	$10,000
Annual cost of operation	$1,000 first year and increasing $50 annually	$460 first year and reduces $20 annually
Annual cost of maintenance	$350	$75
residual value	$400	$750
life of motor	$6	$12