1.

a) Calculate the ROI for a $10,000 investment that generates profits of $1,000 in year 1; $2,000 in year 2 and year 3; $3,000 in year 4; and $5,000 in year 5. Formula: ROI=(Total Profits - Amount Invested)/Amount Invested Amount Invested: Total Profits: ROI:

b) Calculate the Payback Period for a $10,000 investment that generates profits of $1,000 in year 1; $2,000 in year 2 and year 3; $3,000 in year 4; and $5,000 in year 5. Formula: Payback Period= Amount Invested/Annual Profits Amount Invested: Annual Profits: Payback Period: