I have only one sheet of  handwritten notes  (may be written on front and back). I have shown the camera the front and back of this page. I will not write on this page during the exam.

$12,000 is invested with an effective interest rate is 6% per year. How much money is in the account after 10 years?

Which of the following is the proper value to use as the “first cost” of the defender (existing equipment) in a replacement analysis?

Two bridge designs have been proposed for the new interstate highway to cross Caney Fork river near Carthage, Tennessee A bridge constructed from wood will cost $6000 and will last for eight years. A bridge constructed from steel will cost $11,000 and will last for twenty years. Either bridge will have a zero salvage value at the end of its life. Use an interest rate of 8% and determine whether the increased life of the steel bridge justifies its increased cost. What is the result of the analysis?

Extra Credit Question. Extra credit points are not included in the immediate score provided. This is part B of a two part question. (You must have part A correct to get credit for part B.) New equipment comes with a maintenance agreement that covers breakdown costs for the first two years, then the maintenance agreement cost $2000 per year payable at the beginning of the year.  Routine maintenance is not covered on the contract and is estimated to cost $1500 every year.  The expected life of the equipment is 10 years and interest rate is 6%.  Part B:  What is the present worth of the maintenance?

A cash flow begins at $500 in year one and decreases by $25 each year after the first year until year 10. This cash flow represents

An individual wishes to deposit an amount of money now so that at the end of five years $500 will have been accumulated. With interest at 4% per year, compounded semiannually, how much should be deposited now?

An annuity amount A is paid out at the end of years 5 through 10.  Which of the following is true regarding this cash flow?

Which of the following is true when using an end-of-period assumption for cash flows?

A cash flow begins at $100 in year one then increases by 5% each year until year 10.  This type of cash flow includes a