1. You are analyzing two machines which have differing initial and ongoing costs and differing lives. Machine Ys initial cost is $46,000, and incurs ongoing costs of $6,200 per year for three years. Machine Zs initial cost is $51,000, and incurs ongoing costs of $5,600 per year for four years. Find the equivalent annual cost of the lowest cost machine, to the nearest dollar, assuming a 12% discount rate:

	$24,336
	$22,391
	$23,154
	$19,667

2. A company paid an attorney to provide an opinion about the validity of the title to property it is considering purchasing for an expansion. What type of cost is this?

Fixed
	Opportunity cost
	Variable
	Sunk