1. What is the present value of the following? annuities?
a. $2,500 a year for 10 years discounted back to the present at 7 percent.
b. ?$70 a year for 3 years discounted back to the present at 3 percent.
c. $280 a year for 7 years discounted back to the present at 6 percent.
d. ?$500 a year for 10 years discounted back to the present at 10 percent.
2. In an aggregate planning problem, if the beginning inventory is 200 units, the demand for 12 months is 1000 and the ending inventory is zero, which of the following is the production requirement for each month if you follow a Level strategy?
Select one: a. 100 units b. 67 units c. 83 units d. 800 units e. 1200 units