1. Youre working as an accountant at a CPA firm currently. Youre trying to figure out if you should start your own practice. Your current income is $75,000 a year. The cost of rent for an office space is $18,000 a year. Other overhead costs are about $15,000 a year. What is the opportunity cost of going to private practice?

a) $33,000

b) $75,000

c) $93,000

d) $90,000

2. When evaluating two mutually exclusive investments (you only have enough money for one, but not both), the best method to use is:

a) Payback Period

b) IRR

c) NPV

d) NPV and IRR are equally good.