First: [4] Two engineering graduates are planning for their early retirement 20 years from now. They believe that they will need $2,000,000 in year 20. Their plan is to live on one of their salaries and invest the other. They already have $25,000 in their investment account. (a) How much will they have to invest each year if the account grows at a rate of 10% per year? [2] (b) If the maximum they have available to invest each year is $40,000, will they reach their goal of $2 million by year 20? [2] Second: [4] The four alternatives described below are being evaluated by the rate of return method. Alternative A B D Initial Investment, $ -40,000 -75.000 - 100,000 -200,000 1*% 29 15 16 14 Find the followings: a) If the proposals are independent, which should be selected at a MARR of 16% per year? [2] b) If the proposals are mutually exclusive, which one should be selected at a MARR of 9% per year? [2]