1. Overhaul of a production line generates the following incremental cash inflows over the line's 5-year remaining life.

e-Money rates. An internet company, eMoney, is offering a money market account with an APR. of 5%. What is the effective annual interest rate offered by eMoney if the compounding interval is (a) annual (b) monthly (0) quarterly (d) continuously? Continuously compounded interest rate is the A.P.R when the compounding frequency goes to innity. You might nd the following identity useful: 3 = limknm (1 + i)!\"