Kate is considering an investment in a retail shopping mall. The initial investment is $630,000. She expects to receive cash income of $90,000 a year. What is the payback period?

a.2 years

b.12 years

c.7 years

d.5 years

e.15 years

Cooper Industries is considering a project that would require an initial investment of $101,000. The project would result in cost savings of $62,000 in year 1 and $70,000 in year two. The internal rate of return is

a.between 16% and 17%.

b.under 15%.

c.between 18% and 20%.

d.None of these choices are correct.