**PLEASE SHOW WORK**

a. A restaurant manager has a capital lease. The lease calls for a $2,000 per month lease payment, which includes $1,800 in principal and $200 in interest. Prior to entering any information about the lease payments, the manager's operating income line on the USAR formatted income statement for this month shows a positive $20,000. What will be the lease is entered into the income statement?

	A.	$19,800
	B.	$18,000
	C.	$18,200
	D.	$20,000

b. For investors, "financing" is the term used to describe the...

	A.	length of time borrowed money is invested.
	B.	methods utilized to obtain the money needed to invest.
	C.	amount of money that must be raised to fund a new investment.
	D.	estimated returns (ROI) to be generated by a specific investment.

c. An investor finances a $4,000,000 project with 80% debt and 20% equity. The interest payment due on the debt in year one is 8%. The investor achieves a net operating income of $600,000 from the project in year one. What is this investor's equity ROI on the project in year one?

	A.	41%
	B.	45%
	C.	39%
	D.	43%