1. A company deposits $10,000 in a bank at the beginning of each year for 20 years. The account earns 4% interest, compounded every 6 months. What is in the account at the end of 20 years?

2. Brewster’s is considering a project with a 5-year life and an initial cost of $120,000. The discount rate for the project is 12 percent. The firm expects to sell 2,100 units a year at a cash flow per unit of $20. The firm will have the option to abandon this project after three years at which time it could sell the project for $50,000. At what level of sales should the firm be willing to abandon this project at the end of the third year?

420 units

1,041 units

1,479 units

1,618 units

2,500 units