Washington purchased an automobile from smithville motors. the contract called for payment of the purchase price in installments and contained the defense preservation notice required by the federal trade commission regulation. smithville assigned the contract to rustic finance co. the car was always in need of repairs, and by the time it was half paid for, it would no longer run. washington canceled the contract. meanwhile, smithville had gone out of business. washington sued rustic for the amount she had paid smithville. rustic refused to pay on the grounds that it had not been at fault. decide.

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?