Harvey Corporation has provided the following data concerning an investment project that it is considering: Initial investment $480,000 Annual cash flow $ 145,000 per year The life of the project is 4 years. The company's discount rate is 8%. The net present value of the project is closest to: OA. $100,000 OB. $480,000 OC. $480,240 OD. $240 Tandy Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $450,000 and would have a ten-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $20,000 per year to operate and maintain, but would save $100,000 per year in labor and other costs. The old machine can be sold now for scrap for $50,000. The simple rate of return on the new machine is closest to (Ignore income taxes.): O A. 8.75% OB. 20.00% OC. 7.78% OD. 22.22%