1. Machinery costs $1 million today and $100,000 per year to operate. It lasts for 1 years. What is the equivalent annual annuity if the discount rate is 2%? Enter your answer in dollars and round to the cent. Remember that costs are negative cash flows; so, include the negative sign.
2. Find the profitability index of a project with the following cash flows using a discount rate of 8%: Period 0: -1000 Period 1: 778 Period 2: 327 Period 3: 259 Enter your answer in a decimal and round to the hundredths place.
3. Prepare a request for funding from an external vendor to cover the cost of the health information management annual meeting and health information management outreach efforts.