ASAP Please!

1. The Corvette Corporation has a computer system that is in poor condition. The system can be either overhauled or replaced with a new system. The following data have been gathered concerning these two alternatives:

	Present System	Proposed New System
Purchase cost when new	$100,000	$150,000
Accumulated depreciation	$90,000	-
Overhaul cost needed now	$80,000	-
Annual cash operating costs	$30,000	$20,000
Salvage value now	$10,000	-
Salvage value in 8 years	$2,000	$15,000
Working capital required	-	$50,000

The Corvette Corporation uses a 12% discount rate and the total cost approach to net present value analysis. Both alternatives are expected to have a useful life of eight years. The net present value of the alternative of overhauling the present system is closest to:

A. ($232,272)

B. ($108,000)

C. ($238,232)

D. ($228,232)

2. Malibu Systems is a division of a major corporation. Last year the division had total sales of $10,040,000, net operating income of $582,320, and average operating assets of $4,000,000. The company's minimum required rate of return is 14%. The division's return on investment (ROI) is closest to:

A. 14.6%

B. 36.6%

C. 4.1%

D. 0.9%