Please show all your work, draw cash flow diagrams. Problems 1 through 4 are based on the following statement:

Please show all your work, draw cash flow diagrams.

Problems 1 through 4 are based on the following statement:

A start-up internet service provider expects to lose money in each of the first four years. Losses are projected to be $50 million in year one, $40 million in year two, $30 million in year three and $5 million in year four. An interest rate of 10% per year is used.

1 The present worth of the losses for the first three years is nearest to:

           A)        $90,124,000

           B)        $101,054,000

           C)        $124,345,000

           D)       $147,636,000

2 The present worth of the losses for all four years is nearest to:

           A)        $101,054,000

           B)        $104,244,000

           C)        $110,395,000

           D)       $124,345,000

3 The equivalent uniform annual worth of the losses through year four is nearest to:

           A)        $29,533,000

           B)        $30,621,000

           C)        $31,882,000

           D)       $32,889,000

4 In order to recover the losses by the end of year nine, the company's equivalent uniform annual profit in years five through nine must be nearest to:

           A)        $25,631,000

           B)        $36,922,000

           C)        $44,288,000

           D)       $51,369,000

5 Expenditures for maintenance of a certain machine are expected to be $900 in year two, $1,400 in year five, and a uniform amount of $2,000 in years six through nine. At an interest rate of 10% per year, the present worth of the expenditures is nearest to:

           A)        $4,521

           B)        $4,973

           C)        $5,192

           D)       $5,549

6 Costs for maintenance of buildings at an industrial complex are expected to be $1,000 in year three, $1,200 in year four and amounts increasing by $200 per year thereafter through year nine. At an interest rate of 10% per year, the present worth of the expenditures is nearest to:

           A)        $5,163

           B)        $5,575

           C)        $6,133

           D)       $7,421

7 The costs of fuel for a smelting operation are expected to be $50,000 in year three, $52,500 in year four and amounts increasing by 5% per year thereafter through year ten. At an interest rate of 8% per year, the present worth of the fuel cost is nearest to:

           A)        $190,400

           B)        $204,600

           C)        $277,900

           D)       $336,300

8 Payments of $1,000 in year two and $4,000 in year five are equivalent to uniform payments in years three through seven at an interest rate of 10% per year nearest to:

           A)        $899

           B)        $985

           C)        $1,177

           D)       $3,732

9 At an interest rate of 10% per year, the length of time required from time zero to recover an initial investment of $10,000 by receipts of $1,000 per year beginning in year three is nearest to:

           A)        10 years

           B)        20 years

           C)        100 years

           D)       never

10 The number of years from now that an initial investment of $1,000,000 would be recovered from uniform receipts of $131,000 per year beginning three years from now at an interest rate of 10% per year is nearest to:

           A)        24

           B)        29

           C)        35

           D)       40