1. You have just graduated from college and are deciding between career choices. You have three potential options: (1) a cow/calf operation, (2) a crop operation, or (3) a feed lot where you finish cattle. All three require an investment of $100,000. The resulting profits for each option are:

Year	Cow/calf	Crops	Feedlot
1	15,000	45,000	30,000
2	20,000	40,000	30,000
3	30,000	35,000	30,000
4	35,000	15,000	30,000
5	55,000	15,000	30,000

The required-rate-of-return for the investment is 7.5%. Calculate returns for each alternative using each method listed below:

a. Simple-rate-of-return method

b. Payback period method

c. Net present value method

d. IRR method

e. MIRR method

f. What is your overall recommendation for which investment should be pursued?

g. Does your overall recommendation change if the required-rate-of-return for the investment is 10%?

h. Explain your answer to part (g).