Fill in the blanks:
Suppose Paolo would like to invest $6,000 of his savings.
One way of investing is to purchase stock or bonds from a private company.
1. Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab-a practice known as finance. Buying a bond issued by NanoSpeck would give Paolo the firm. In the event that NanoSpeck runs into financial difficulty, will be paid first.

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?