The operating cost of a new pumping unit is $500 for the first year. Starting the second year, the operating cost increases by $200 per year for the next 10 years. Calculate the equivalent annual operating cost of the pumping unit. What will be the present and future value of the operating costs over the 11-year period? Assume the market interest rate of 8.0% per year An oil producer has borrowed $200,000 for the expansion of a production facility at an interest rate of 10% for a period of three years. Calculate (a) the quarterly payment, and (b) monthly payment. If the loan must be paid back using quarterly payments, show the amortization schedule for the first two years. An engineer has generated an oil production forecast for a group of wells. According to this forecast, the wells produce 60,000 barrels in the first year. Starting the second year, production declines by 2,000 barrels per year for four years. Starting the sixth year, production declines by 5,000 barrels per year for another five years. Calculate the present value of the revenues if the oil price is $60 per barrel for the first five years and $40 per barrel thereafter. Also, calculate the equivalent annual value of these revenues. Assume an interest rate of 8% per year. An oil producer has purchased a pumping unit for $30,000, and the loan is to be paid back in 24 equal monthly installments of $1,771.43 per month. Calculate the nominal interest rate charged for this financing arrangement. Calculate the effective interest rate