Questions below are for the subject finance for engineers & there are 4 Questions

Question 1)

You are given $7700 as a graduation gift and you are looking into two high interest options. The first option is a bond with a maturity date three years from now that offers 12.25% per year interest, payable annually . The interest can be withdrawn only at the end of year 3. Another option is a tax free market saving account that offers 11.5% per year interest , and the funds cab be withdrawn any time after 2 years. which is a better alternative on the basis of total interest paid at the end of year 3?

Discuss other factors, In addition to interest rate, that should be taken into consideration to justify your investment decision.,

Q2) Linda is considering using solar power for her new house. The solar planet that she is looking into contains four cells and can generate 80 milliwatts per square inch for 6 hours on an average day. Assume that all appliances she wants to power with solar electricity consume on average 900 watts per hour. The solar panel she is looking into costs around $73 per square foot plus additional cost of 600$ for accessories and installation and will last for six years. Alternatively, she can purchase from the power grid at 44cents per 100 watts-hours per day. should linda use the solar power system ?

Q3) A manufacturer of hardboard and fiber cement sidings and panels plans to purchase new equipment for its new product line. three alternatives are under consideration. the costs associated with each alternative are given below. which alternative is most economical to minimize total life cycle cost, if the life of the equipment is estimated to be 7 years and the company operates on average 3800 hours per year? Assume negligible salvage value

Alternative A B C

investment cost 40,000 39,000 41,000

Fixed cost,$/hour 4700 4500 4800

variable cost, $hour 240 235 243

Q4) The annual fixed cost for a light fixture manufacturing company are $38,000 and the variable cost are $40 per unit. If the selling price per unit is p=485-1.395X, What is the optimum demand for a light fixture?