1) Sparky the Electrician specializes in rewiring historic houses. Sparky recently purchased a new wire-pulling device that will decrease the time needed to complete each job and increase total revenues. The device will cost $5,577 and will increase net cash flows by $1,690 per year. The new device has a useful life of 7 years and a residual value of $0. What is the payback period for the new wire-pulling device?

A. 3.12 years

B. 2.80 years

C. 3.48 years

D. 3.30 years

2)Camping World Corporation has operating income of $74,000, a sales margin of 25%, and capital turnover of 1.6. The return on investment (ROI) for Camping World Corporation may be closest to

A. 2%.

B. 250%.

C. 10%.

D. 40%.

3) Mountaintop golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $48,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $21,000,000 for the golfing season. About 410,000 golfers are expected each year. Variable costs are about $15 per golfer. The Mountaintop golf course is a price-taker and won't be able to charge more than its competitors who charge $102 per golfer. What profit will it earn in terms of dollars?

A. $(21,000,000)

B. $14,670,000

C. $(14,670,000)

D. $26,970,000