5 Jarvey Corporation is studying a project that would have a ten-year life and would require a $450,000 investment in equipment which has no salvage value. The project would provide net operating income each year as follows for the life of the project (Ignore income taxes.): $ 500,000 200,000 300,000 Sales Less cash variable expenses Contribution margin Less fixed expenses: Fixed cash expenses Depreciation expenses Net operating income $ 150,000 45,000 195,000 $ 105,000 The company's required rate of return is 12%. The payback period for this project is closest to: 6 Jark Corporation has invested in a machine that cost $60,000, that has a useful life of six years, and that has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its useful life. It will have a payback period of four years. Given these data, the simple rate of return on the machine is closest to (Ignore income taxes.): Multiple Choice O 8.3% O 7.2% O 9.5% O 25%