Show all your work and give the excel outputs.

1. The manufacturing cost for the high performance lubricants closely follows the cost of crude oil. For the next 17 years, a small refinery is expected to have a cost of $5 million in years 1 through 6, after which the cost increases by 10% per year. The nominal interest rate is 10% per semi-year compounded quarterly. Find the present worth of the manufacturing cost, using

i. formulas

ii. goal seek function of the Excel application

2. An electronic products manufacturing company has decided to invest funds for the first months to have funds for the development of new products in the future. The financial plan is to invest first and then use the available funds in the future.

Months 1 through 7: Invest 30 million TL in month 1, increasing 1 million TL per month

Months 8 through 11: Invest (or withdraw) the uniform amount X.

Months 12 through 16: Invest (or withdraw) the uniform amount 2X.

From months 17 : Withdraw 2 million TL starting from month 17, and never ending.

The nominal rate is 7.5 % per quarter compounded monthly. Find X that covers the interactions by

i. factor tables with interpolation

ii. goal seek function of the excel application