Andrea, who lives in ohio, volunteered to travel to arizona in february to work on a home-building project for habitat for humanity (a qualified charitable organization). she was in arizona for three weeks. she normally makes $600 per week as a carpenter’s assistant and plans to deduct $1,800 as a charitable contribution. in addition, she incurred $700 for transportation in connection with the trip. what is andrea’s deduction associated with this charitable activity?

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?