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Page: Chapter 7 According to legend, Manhattan Island was bought by the Dutch from the local Indians for s24.00 in 1626. In 1991 the island's land was valued at $12,000,000,000.00. What rate of return would the Indians have received if they had retained title? Assume payment is at the beginning of 1626 and the land value is at the end of 1991. Provide a cashflow diagram, write your symbolic equation using the Author's notation, then solve using the appropriate exact formula from the inside front cover of the textbook in place of the symbolic notation. Page. Chapter 6 A certain industrial firm desires an economic analysis to determine which oftwo different machines should be purchased. Each machine is capable of performing the same task in a given amount of time. Assume the minimum attractive rate of return (MAR) is 8%. The following data are to be used in your analysis. Machine Y $8,000.0 $ 150.00 $2,000.00 12 Machine X $5,000.00 First Cost Annual Maintenance Cost0.00 Salvage value Estimated life, in years S0.00 Which machine would you choose? Base your answer on annual cost. Chapter 5 A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are: $10,000 $15,000$20,000 Installed Cost Uniform Annual Benefit Useful life, in years S 1,625$ 1,530 S 1,890 20 10 For each alternative, the salvage value at the end of its useful life is zero. At the end of ten years, A could be replaced with another A with identical costs and benefits. The minimum attractive (MARR) is 6%, which alternative should be selected? . Chapter7 A man buys a table saw at a local store for $175.00. He may either pay cash for it, or pay $35.00 now and $12.64 a month for twelve months, beginning thirty days hence. If the man chooses the paryment plan whan is the nominal annual interest rate he will be charged

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