1. A firm purchased some equipment at a very favorable price of $30,000. The equipment reduced costs by $1000 per year during 8 years of use. After 8 years, the equipment was sold for $40,000. Assuming interest at 9%, compute the equivalent uniform annual cost?
2. A mining firm makes annual deposits of $500,000 into a reclamation fund for 30 years. If the firm must have $20 million when the mine is closed, what interest rate as a percentage must the investment earn?
3. A mine is for sale for $800,000. It is believed the mine will produce a profit of $250,000 the first year, but the profit will decline $25,000 a year after that, eventually reaching zero, whereupon the mine will be worthless. What rate of return as a percentage would be earned on the mine?