(Ref. Ch. 3 Exercise on p. 52, Oakshott's book) A firm wishes to provide a sinking fund in order to replace equipment that has a life span of 10 years. If the cost of the equipment will be 1m in 10 years' time, what annual amount does it need to put aside in an account paying 7% p.a.? Reminder: Depending on the precision you use for your computation, there could be a small difference in the last digit or two Note 1m = 1 million Select one: a. 50,217 O b. 63, 357 C. 70,025 d. 72,378 e. 59,812 (Ref. Ch. 3 Exercise on p. 52, Oakshott's book) You decide to take out a 20-year mortgage for 65 000 at an annual interest rate of 7.5%. What would be the annual repayment? Select one a. 7271 b. 83225 C. 5806 d. 6854 e. 6376 (Ref. Ch. 14 Exercise on p. 393, Oakshott's book) Example 17.1: We want to formulate the problem below for linear programming A manufacturer produces two products, P and Q, which when sold earn contributions of 600 and 400 per unit respectively. The manufacture of each product requires time on a lathe and a polishing machine. Each unit of P requires 2 hours on the lathe and 1 hour on the polishing machine, while Q requires 1 hour on each machine. Each day, 10 hours are available on the lathe and 7 hours on the polishing machine. Determine the number of units of P and that should be produced per day to maximise contribution. Let C be the total contribution. Which one is the correct line for the objective function? Select one a. Max. C = 2P+Q b. Min. C = 2P+Q o - C. Max C = 600P + 4000 d. Min. C = 600P + 4000 e. Max. C = P +Q Refer to Example 17.1 above (ii) Choose the line for the constraint regarding the lathe Select one o a. P+Q S 10 b. 2P+Q57 c 2P+Qs 10 d. P+20 7 e. P+2Q 10