1. An excavator is being planned for acquisition at the cost of 150,000 USD. The machine is expected to generate an annual revenue of 35,000. The annual cost of utilities associated with the device is 2,000 USD. The maintenance cost of the machine is expected to be 3,0000 USD. What is the payback period for the excavator?
2. Determine the present worth of a ten-year project whose first cost is $16,701, net-annual benefit of $2,500, and salvage value of 2000. Assume an annual compounded interest rate of 8% a year.