1. The physician's office that you manage wants to buy equipment for $20,000, with projected cash flows of $3,000 per year over the equipment's ten-year useful life. Calculate the NPV/IRR at 10 percent.
2. A family has a $140,676, 25-year mortgage at 6.3% compounded monthly.
A) Find the monthly payment and the total interest paid.
B) Suppose the family decides to add an extra $100 to its mortgage payment each month starting with the very first payment. How long will it take the family to pay off the mortgage? How much interest will the family save?