$300,000 Initial Investment, expected life = 8 yrs, salvage value = $20,000, revenues and expenses are given below: 1) Payback Period (remember to disclude non-cash depreciation expense)?, is this within the required limit of 5 years? 2) Simple Rate of Return? is this within the required 12%? Given: Initial Investment: 300,000 Revenues $ 200.000 Less operating expenses: Commissions to amusement houses $ 100,000 Insurance Depreciation Maintenance Net operating income 1) Payback Period: 7,000 35,000 18,000 160,000 $ 40,000 Acceptable? 2) Simple Rate of Return: Acceptable? On Own