Fast Food, Inc., has purchased a new donut maker. It cost $16,000 and has an estimated life of 10 years. The following annual donut sales and expenses are projected (Ignore income taxes.): Sales $ 23,100 Expenses: Flour, etc., required in making donuts $ 10.000 Salaries 6,000 Rent 17,600 1,600 $ 5,500 Net operating income Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period on the new machine is closest to: 0 2.8 years O 1.4 years O 5 years The Zingstad Corporation is considering an investment with the following data (Ignore income taxes.): Year 1 Year 2 Year 3 Year 4 Year 5 Investment $ 32.000 $ 12.000 Cash inflow $0 $ 8,000 $ 20,000 $ 16,000 $ 16,000 Cash inflows occur evenly throughout the year. The payback period for this investment is: O 3.5 years O 3.0 years 0 4.5 years O 4.0 years