An anticipated purchase of equipment for $490,000 with a useful life of 8 years and no residual value is expected to yield the following annual incomes and net cash flows: 2 Year Income Net Cash Flow 1 $60,000 $110,000 50,000 100,000 3 50,000 100,000 40,000 90,000 S 40,000 90,000 6 40,000 90,000 7 40,000 90,000 40,000 90,000 4 8 The cash payback period for the equipment is a. 4 years Ob. year . 3 years Od. 6 years The expected average rate of return for a proposed investment of $4,580,000 in a fixed asset, using straight-line depreciation, a useful life of 20 years, no residual value, and an expected total income of $9,160,000 over the 20 years, is (round to two decimal places) Oa. 10.00% Ob. 40.00% Oc. 1.00% Od. 20.00% Delaney Company is considering replacing equipment that originally cost $533,000 and has accumulated depreciation of $373,100 to date. A new machine will cost $845,000. The sunk cost in this situation is Oa. $159,900 Ob. $127,920 Oc. $533,000 Od. $685.100