1. ACME Tools is considering buying a compressor for $75,000. The compressor will save $24,000 a year in production costs over its7 yearlife. If ACME's cost of money is 10%, determine the EAW.
2. Determine the first cost of a new vision measurement system that has an EAC of $5,000 and an annual operating cost of $2,500. The machine is expected to last 6 years and money is worth 7%.
3. Given the cost and benefits shown below, determine the IRR. Confirm your answer using Excel and submit both.

0, -3000

1, 750

2, 750

3, 750

4, 750

5,750

4. What is the rate of return for the following project? It costs $300,000 to start and returns $50,000 the first year with a $2,500 increase each year thereafter. The project's life is 10 years.If the company could get 5% interest on their money instead of investing in this project, which should they choose?

5.Use PWs to calculate the benefit/cost ratio at i = 5% for a highway project. The first cost is $150,000 and O/M costs are $5,000 per year. There is no salvage value after 20 years. Time savings to users are worth $35,000 per year and neighborhood disruption is a disbenefit of $10,000 per year.Is this project attractivefrom a PW perspective?