1. What is the simple payback for Project Z, the projects cash flows are as shown in the table?

Year	Project Z
0	-$125
1	50
2	40
3	30
4	30

A) 2.50 years

B) 2.82 years

C) 3.00 years

D) 3.17 years

2. At what discount rate would you be indifferent between accepting and rejecting a project which costs $6,000 today with annual cash flows of $1,200 for the next nine years?

A) 13.50%

B) 13.60%

C) 13.70%

D) 13.80%