Please answer questions 1-4.

Thank you.

Net Benefit Analysis of an Investment Project Q1) Sandra is looking at buying a new machine for her production business. The new machine will cost Sandra $1000. She plans to operate the machine for 4 years and then sell it for scrap value. The maintenance operating costs are estimated at $200 at the end of year one, $300 for years two and three, and $400 at year four. The machine will be sold for scrap in year four for an anticipated value of $200. The estimated additional revenues from using the new machine are $600 in year one, and $800 in each of the years two through four. Assuming the interest rate is 10% should Sandra purchase the machine? Q2) Dave is thinking about purchasing a rental property for $120,000 in cash. He estimates that he will spend $10,000 to upgrade the property initially and incur maintenance costs of $3,000 a year after. He plans to rent the property and anticipates receiving $7,200 in revenue at the end of each year. He is planning to sell the property at the end of year three for $150,000. Assuming the interest rate is 10% should Dave purchase the house? Q3) Describe some of the categories and reasons interest rates differ (ie auto loans, mortgages, student loans, business loans, etc.) Q4) Describe what Land rent is. Here is a quote from the Encyclopedia Britannica "... It was observed that the demand for the product of land would make it profitable to extend cultivation to soils of lesser and lesser fertility, as long as the addition to the value of output would cover the costs of cultivation on the least fertile acreage cultivated." What does this mean and what does it have to do with Land rent