please answer question 7 and 12 please answer both
profits when conducting a cost-benefit analysis. Show long description 3. The Family Kitchen restaurant currently makes profits of $85,000 per year. They are considering an expansion opportunity that will increase their profits to $110,000 per year. Which profits should they consider when conducting a cost-benefit analysis? 4. Jones Landscaping invests $5,000 in a new lawn tractor and expects to earn an additional $1,250 per year from the use of this tractor. The tractor is expected to last 7 years. Calculate the ROI. 5. Calculate the payback period for the new lawn tractor in problem \#4. 6. Assuming the lawn tractor in problem \#4 actually lasts 10 years but is less productive in the last three years and only generates $500 in profits during these years, calculate the ROI. 7. Calculate the ROI and payback period for a $10,000 investment that generates profits of $1,000 in year 1;$2,000 in year 2 and year 3;$3,000 in year 4 ; and $5,000 in year 5 . 7. Calculate the ROI and payback period for a $10,000 investment that generates profits of $1,000 in year 1;$2,000 in year 2 and year 3;$3,000 in year 4; and $5,000 in year 5 . 8. Calculate the ROI and payback period for a $5,000 investment that generates profits of $500 in year 1 and $1,400 in each of years 2 through 5 . 9. Of the two investment options presented in problems \#7 and \#8, which do you prefer? Why? 10. Mid-Town Corner Market spends $2,500 to purchase a point-of-sale soft drink refrigerator to be located along the checkout line. The average retail price of a soft drink is $1.75, and the cost to the market is $0.65 each. Calculate break-even on investment. 11. Computer support services currently cost ABC corporation $100,000 per year. Next World Computer services has proposed to provide these same computer support services to ABC corporation for $80,000 per year. There is a one-time cost of $75,000 associated with transferring the files and training staff. a. What is the investment amount? b. What are the annual benefits? c. What are the total profits over 5 years? d. What is the ROI over 5 years? e. What is the payback period? 12. Mary White is examining two expansion opportunities for her retail store. One alternative is to spend $50,000 to open a new store on Main Street. The Main Street store is expected to generate profits of $2,500 the first year, $5,000 the second year, and $7,500 in each of years 3 through 10 . The second alternative is to open a new store at the mall. The mall location will cost $60,000 to open and is expected to generate profits of $8,000 each year for 10 years. a. Calculate the ROI and payback period for each alternative. b. Which should Mary select? Whv
