I will definately give a thumbs up for correct answers.

1.a) ACompany is trading in a fully depreciated old asset for a new one. Cost of the new asset is 14596 with a 5-year life and straight-line depreciation will be used. The company receives a $500 allowance for the asset traded in. Additional sales revenue from the investment will be $2,100 and expenses of $400 (excluding depreciation). The company is in a 25% tax bracket. What is the ARR for this investment?

1.b) If an equipment investment cost 1459 with a 5-year life using straight-line depreciation and provided additional annual sales revenue of $3,500 and expenses (excluding depreciation) of $300, and the company is in a 50% tax bracket, what is the payback period in years? Round your answer to the nearest 2 decimal places.