A project that cost $80000 with a useful life of 5 years is being considered. Straight-line depreciation is being used and salvage value is $5000. The project will generate annual revenues of $17125. The annual rate of return is

40.3%.

6.0%.

7.0%.

5.0%.

A project with an initial investment of $66000 and a profitability index of 1.239 also has an internal rate of return of 12%. The present value of net cash flows is

$53269.

$81774.

$66000.

$73920.

Swifty Company is considering buying a machine for $30000 with an estimated life of 10 years and no salvage value. The straight-line method of depreciation will be used. The machine is expected to generate net income of $7000 each year. The cash payback on this investment is

10.00 years.

2.14 years.

3.00 years.

0.86 years.