Runnin' wild family fun center bought new go-karts for its recreation facility. the useful life is 6 years. the go-karts had a total cost of $5,100 and will generate $1,700 total cash inflows each year for the life of the go-karts. the residual value of the go-karts is $650. the payback period in years is closest to
a) 3.38.b) 3.00.c) 2.62.d) 2.17.

Ronald sees that his employer's stock has grown from $20 a share to $60 a share this year, while most stocks have seen only 5% growth. his employer offers to let him convert a large portion of his salary into stock options. what is not a valid reason to turn down the stock offer? a)stocks with high returns have high volatility, and ronald's company may not grow further. b)ronald may be taxed more for capital gains than he would be for employment income. c)stock options are illiquid, and ronald may not be able to use them to pay for unexpected bills. d)ronald would be committing stock fraud if he exercises the options.