Peter Deschambault's cake shop in Bradwell Saskatchewan earns a net income of $0.05 per $1 in sales. Peter has a _____ of 5 %.

-return on equity

-total asset turnover

-profit margin

-return on assets

-Du Pont measure

2. Albert recently began a new job as a marketing representative for a local sports franchise. The compensation arrangement is good, but a bit odd - Albert will be paid once per year. He is wondering what the total value of his employment contract will be, given the following information.

Calculate the present value of Albert's total career compensation, based on the following:

yearly cash flows = $67,000

- cash flow annual growth rate = 3% compounded annually

- required rate of return = 8% with annual compounding

- timeframe = 45years.