1. To save for her newborn son's college education, Lea Wilson will invest $20,000 at the beginning of each year for the next 16 years. The interest rate is 11 percent. What is the future value? Use Appendix C. (Round "FV Factor" to 3 decimal places.)
2. The motor works is considering an expansion project with estimated fixed cost of 87,000, depreciation of $22,900, variable cost per unit of $22.37 and an estimated sales price of $28.50 per unit. How many units must the firm sell to break even on a cash basis?