1. This investment of $50000 has a 10 year useful life and $5000 salvage value at the end of the useful life. The annual benefit is $10000 for the first three years, and decreases by $1000 per year after that ($9000 for year 4 and so on). What is the EUAB of this investment if interest rate (i) is 10%.
A. $202
B. -$172
C. $23
D. $375
2. You spend $1000 and in return receive three payments of $800-at the end of the 2nd, 4th, and 6th year. What is the present worth of this investment if th interest rate is 10% per year, compounded continuously
A. $460
B. $750
C. $640
D. $540
3.