1. A stock produced total returns of 15%, -12%, 20%, and 36% over the past four years, respectively. What is the geometric average return?

a. 13.36%

b. 12.44%

c. 11.30%

d. 2.04%

e. 0.83%

2. ABC Products needs to replace its rawhide tanning and molding equipment. It can be used for five years and will have no salvage value. The equipment costs $930,000. The firm can lease it for $245,000 a year, or it can borrow the money to purchase the equipment at 5%. The firm's tax rate is 40%. The CCA rate is 20% (Class 8). What is the present value of the depreciation tax shield?

a. 301,242

b. $336,959

c. $343,885

d. $318,767

e. $351,193