$(10$ pts$.)$ You must choose between four pieces of comparable equipment

based on the costs and salvage values given below. All four pieces have a life of $10$ years.

The interest rate is $12\%.$ What are the two most preferable projects and the approximate

difference between their present worth based on least cost?

$(5$ pts$.)$ A tractor costs $$7500.$ After $10$ years it has a salvage value of $$5000.$

Maintenance costs are $$500$ per year. If the interest rate is $12\%,$ what is the equivalent

uniform annual cost?

$(5$ pts$.)$ A company can manufacture a product using hand tools. Tools will cost

$$1000,$ and the manufacturing cost per unit will be $$1\mathrm{.}50.$ As an alternative, an automated

system will cost $$15000$ with the manufacturing cost per unit of $$0\mathrm{.}05.$ With the

anticipated annual volume of $5000$ units, and interest rate of $10\%,$ what will be the break$-$

even point $($in years$)?$

$(5$ pts$.)$ An asset is purchased for $$100000.$ The estimated life is $10$ years and the

salvage value is $$15000.$ Calculate the book value of the asset after $4$ years via straight$-$

line method and MACRS method.

$(5$ pts$.)$ A more efficient heating system adds $$7,500$ to the cost of your project.

Adding this system will save $$1200$ per year. If the interest rate is $8\%,$ about how long

will it take to pay back the total investment?