Gomez runs a small pottery firm. he hires one at $11,500 per year, pays annual rent of $7,000 for his shop, and spends $22,500 per year on materials. he has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $6,500 per year if alternatively invested. he has been offered $22,000 per year to work as a potter for a competitor. he estimates his entrepreneurial talents are worth $4,500 per year. total annual revenue from pottery sales is $80,000.calculate the accounting profit for gomez's pottery firm

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?