25. The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $21,000, would be replaced by a new machine. The new machine would be purchased for $462,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $159,000 per year in cash operating costs. The simple rate of return on the investment is closest to (Ignore income taxes.):

16.7%

34.4%

17.7%

18.6%

26. Eddie Corporation is considering the following three investment projects (Ignore income taxes.):

	Project C			Project D			Project E
Investment required	$	12,400		$	55,000		$	100,000
Present value of cash inflows	$	14,830		$	78,950		$	117,160

The profitability index of investment project D is closest to:

0.30

1.44

0.44

0.56