1. A 10-year annuity-immediate pays 100 quarterly for the first year. In each subsequent year, each payment is increased by 5% over the payment for the previous year. There is a nominal annual interest of 8% convertible quarterly. Find the present value of this annuity.
2. Consider palletizer at a bottling plant that has a first cost of $156249, has operating and maintenance costs of $12795 per year, and an estimated net salvage value of $58243 at the end of 30 years. Assume an interest rate of 8%. What is the future worth of this project?