1. Your new job pays a $1000 bonus in the first year, with a $500 increase in subsequent year and continuing for 8 years. What is the present worth of your bonuses if invested at 6% interest?
2. A cell sorter is purchased at $140, 000 and has a useful life of 7 years. If the machine has a salvage value of $20, 000 at the end of its life, and straight line depreciation is used, what is the book value at the end of year 4?