1. Champion Bakers uses specialized ovens to bake its bread. One oven costs $870,000 and lasts about 3 years before it needs to be replaced. The annual operating cost per oven is $10,000. What is the equivalent annual cost of an oven if the required rate of return is 11 percent? (Round your answer to whole dollars)
2. You are considering an annuity which costs $99,246 today. The annuity pays $7,600 a year at an annual interest rate of 6.5 percent. What is the length of the annuity time period? 30.00 years 44.78 years 28.90 years 31.00 years 15.12 years.