1) Plastic Fantastics is evaluating the purchase of machinery to make rubber ducks. The machine would be $72,000 plus $4,000 to install. The new machine will be depreciated at 10.1% percent using the diminishing value method. What is the depreciation in year 2?

2) John's Bakery would like to expand its business by delivering artisan breads for the local restaurant trade. The investment outlay is $120871 and John has calculated that he will earn a profit after taxes over each of the next five of $6740, $15624, $18225, $19963, and $24573 respectively. What is the average AROI for the proposed expansion project? (Please type your answer in decimals e.g. 10.1% should be shown as 0.101.)

3) A company wants to expand by buying another machine in order to produce more products. The machine will cost $28908 and installation costs are expected to be $7693. The machine is expected to generate incremental after-tax cash flows of $9228 in the first year, $10378 in the second year and $19153 in the final year. What is the net present value of the project if the required rate of return is expected to be 8.7% (Please round your answer to the nearest dollar but exclude the $ sign when typing your answer.)