Please show work 1. Answer the following short answer questions (10 points each).

(a) What break-even annual profits do you need to generate from your manufacturing enterprise that requires a $40,000 machine. The machine has to be resold for $8,000 after 5 years. Assume interest rate is 10%.

(b) Kayleigh wishes to retire in 10 years with an equivalent to todays $3,000,000 worth in purchasing power. Inflation rate f = 3% and the banks pays i = 8% APR. How much does she need to deposit now?

(c) Consider the given cash flow A0 = 500, A1 = 500, A2 = 2000, A3 through A7 = 250. (a) Is it simple or non-simple? (b) Is it pure or mixed? (c) Using the IRR (Internal Rate of Return) method, will you accept or reject the project for MARR equals 10%?