PROBLEM #1 a) $2,000 had been initially invested in a small business. The income from the investment at the end of one vear was $8,000. What was the rate of return after one year? b) $7,000 was the net cost of aggressive expansion in the second year. What 13 the rate of return equation using a classic present worth method? c) How many roots does the equation have? d) Solve for positive real roots (ROR values) at the end of year 2. e) Write the composite rate of return relation using the net-investment technique. f) Solve for the composite rate of return if the reinvestment rate was 30%. Problem #2 The one best alternative must be chosen for a project. The initial project starting costs are shown below. The company's MARR is 5%. Using a 5-year study period, determine which proposal should be selected by a) the Aw method, and b) the incremental rate-of-return method. Project Proposal Alternatives Start-up costs $15,000 $20,000 | $25,000 Annual income $3,000 $5,000 $7,000 PROBLEM #1 a) $2,000 had been initially invested in a small business. The income from the investment at the end of one vear was $8,000. What was the rate of return after one year? b) $7,000 was the net cost of aggressive expansion in the second year. What 13 the rate of return equation using a classic present worth method? c) How many roots does the equation have? d) Solve for positive real roots (ROR values) at the end of year 2. e) Write the composite rate of return relation using the net-investment technique. f) Solve for the composite rate of return if the reinvestment rate was 30%. Problem #2 The one best alternative must be chosen for a project. The initial project starting costs are shown below. The company's MARR is 5%. Using a 5-year study period, determine which proposal should be selected by a) the Aw method, and b) the incremental rate-of-return method. Project Proposal Alternatives Start-up costs $15,000 $20,000 | $25,000 Annual income $3,000 $5,000 $7,000