At time t= 0, Donald puts 1000 into a fund crediting interest at an annual nominal interest rate of i compounded semiannually At time t-2, Lewis puts 1000 into a different fund crediting interest at a force of δ=1/5+t for all t. At time t 16, the amounts in each fund will be equal. Note: In this problem, t is representing time in years. Calculate i.

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine