If your uncle borrows $56,000 from the bank at 10 percent interest over the eight-year life of the loan. use appendix d for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. what equal annual payments must be made to discharge the loan, plus pay the bank its required rate of interest? (do not round intermediate calculations. round your final answer to 2 decimal places.)

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i.e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?