You and your spouse are in good health and have reasonably secure jobs. Each of you makes about $25,000 annually. You own a home with an $140,000 mortgage, and you owe $14,000 on car loans, $4,800 in personal debt, and $3,500 in credit card loans. Funeral expenses are estimated at $7,000. You have no other debt. You have no plans to increase the size of your family in the near future. Estimate your total insurance needs using the DINK method

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?