Two alternatives, A and B, are under consideration. Both have a life of five years. Alternative A needs an initial investment of $17,000 and provides a net revenue of $4,000 per year for five years. Alternative B requires an investment of $19,000 and has an annual net revenue of $5,000. All estimates are in actual dollars. Inflation is expected to be 2% per year for the next five years, and the inflation-free (real) MARR is 9.8% per year. Which alternative should be chosen?

A multinational security software company is planning an overseas expansion that will cost $47.00 million of today's dollars 3 years from now. Due to a robust economy in Europe, the cost is expected to increase by 15.00% per year in each of the next 3 years. Assuming the inflation rate is 4% per year, determine the required annual deposit into a fund that earns the market rate of 8.00% per year to ensure that the amount needed in 3 years will be available. (Round the final answer to three decimal places.) The required annual deposit is $

A small heat pump now costs $2,400 to purchase and install. It has a projected useful life of 18 years and will incur annual maintenance costs of $100 per year in real (year-zero) dollars over the useful life. These costs are projected to increase at 6% per year, which is the expected general inflation rate. The annual cost of electricity for the heat pump is $700 in year-zero dollars. Electricity prices are projected to increase at an annual rate of 8%. The firm's MARR, which includes an allowance for general price inflation, is 15% per year (im). No market value is expected from the heat pump at the end of the 18 years of service life. Click the icon to view the interest and annuity table for discrete compounding when i= 15% per year. a. What is the PW of owning and operating the heat pump? The PW is $: (Round to the nearest dollar.) b. (i) What is the AW, expressed in actual dollars, of owning and operating the heat pump? The AW is $ (Round to the nearest dollar.) (ii) What is the…

Smith, a U.S. citizen, has been working as an executive of a telecommunication company in U.S., and her annual salary in 2021 was US$220,000. Her salary was expected to remain unchanged if she continued to work in the company. At the end of the year 2021, however, she was recruited by a media company in Brazil, so she started working in Brazil from January 2022, making an annual salary of US$280,000. Assuming that the amount of her salary equals the amount of her contribution to the production in the company she works for, how much the annual U.S. GDP and GNP in 2022 was changed due to her job relocation?