A.) Project A requires a $280,000 initial investment for new machinery. Project A is expected to yield an income of $20,000 per year and a net cash flow of $70,000 per year for the next five years. Compute Project As payback period.

Payback Period
Numerator:	/	Denominator:	=	Payback Period
	/		=	Payback period
			=	0

B.) Project A requires a $280,000 initial investment for new machinery with a five-year life and a salvage value of $30,000. Project A is expected to yield an annual income of $20,000 per year and a net cash flow of $70,000 per year for the next five years. Compute Project As accounting rate of return.

Accounting Rate of Return
Numerator:	/	Denominator:	=	Accounting Rate of Return
	/		=	Accounting rate of return
				0