1) Two methods of carrying away surface runoff water from a new subdivision are

1)
Two
methods of carrying away surface runoff water from a new subdivision are being
evaluated.Method A. Dig a ditch. The first cost would be $60000 and $25000 redigging and
shaping would be required at five-year intervals forever.Method B. Lay concrete pipe. The first cost would be $150000 and a replacement
would be required at 50-year intervals at net cost of $180000 for ever.At i=12% which method is the better one?2) Suppose that you invest
$50000 in a restaurant business. One year later you sell half of this
business to a partner for $100000. Then a year later the business is in the
red and you have to pay $40000 to close the business. What is the rate of return
on your investment from this restaurant business?