1. Suppose a firm generated $20 million in sales revenue while operating at 88% of existing capacity. What would be the maximum level of sales that could be achieved with the existing asset base?
$23,529,412
$23,255,814
$22,988,506
$22,727,273
$17,600,000
2. A 10-year annuity-immediate pays 100 quarterly for the first year. In each subsequent year, each payment is increased by 5% over the payment for the previous year. There is a nominal annual interest of 8% convertible quarterly. Find the present value of this annuity.
(a) 2997 (b) 3075 (c) 3108 (d) 3225 (e) 3333