1. Al-Hamad Company wishes to determine the returns on two of its product, A and B. product A was purchased 1 year ago for $20,000 and currently has a market value of $21,500. During the year, it generated $800 worth of after-tax receipts. Product B was purchased 4 years ago; its value in the year just completed declined from $12,000 to $11,800. During the year, it generated $1,700 of after-tax receipts.

Find the return for the two products:

r_A =

r_B =