1) Desiree, Inc. is considering adding a new product with a start-up cost of $600,000. This cost will be depreciated straight-line to zero over 3 years, which is the estimated life of the product. Desiree has a 34% tax rate. The net income for each of the three years is estimated at $15,000, $45,000, and $80,000. What is the average accounting return for the new product?

Question 1 options:

	8.64%
	25.93%
	15.56%
	17.28%
	21.00%

2.

If T0 = -$85,000, T1 = $30,000, T2 = $20,000, T3 = $15,000, and T4 = $10,000, what is the payback period for this investment?

Question options:

	1 Year
	2 Years
	4 Years
	3 Years
	The Investment doesn't pay back

3.

If T0 = -$40,000, T1 = $20,000, T2 = $25,000, T3 = $10,000, T4 = $10,000, and T5 = $5,000, what is the payback period for this investment?

Question options:

	2.00 Years
	4.25 Years
	1.80 Years
	3.50 Years
	5.00 Years