alysis Not Using Present Va Tyme Manufacturing Inc. is evaluating a capital investment proposal for a new machine. The new machine has a cost of $230,000, an expected useful life of six years, and a residual value of $20,000. Information on expected annual revenues and expenses associated with the machine is as follows: Revenue from machine $125,000 Expenses of machine, other than depreciation 75,000 Depreciation expense 35,000 All revenues and expenses are in cash, except for depreciation expense. Determine the following: a. The average rate of return, and b. The cash payback period