1. A company is considering a proposal to invest $40,000 in a project that would provide the following net cash flows:

Year 1	$6,500
Year 2	12,700
Year 3	15,000
Year 4	12,800

Compute the project's payback period. Show your work

2. A company purchases a machine for $800,000. The machine has an expected life of 9 years and no salvage value. The company anticipates a yearly after-tax net income of $60,000 to be received uniformly throughout each year. What is the accounting rate of return?

3. A company is considering purchasing a machine for $85,000. The machine is expected to generate a net after-tax income of $11,250 per year. Depreciation expense would be $8,500. What is the payback period for this machine?