Lazar Corporation is evaluating a proposal to invest in a machine costing $89,000. The machine has an estimated useful life of ten years, and an estimated salvage value of $14,000. The machine will increase the company's net income by approximately $9,600 per year. All revenue and expenses other than depreciation will be received and paid in cash.

1.The payback period of the machine is approximate: 

a) 4 years 

b) 8 years 

c) 5 years 

d) 10years

2.The expected rate of return on an average investment of the machine is 

a)10% 

b)17% 

c)18.6% 

d) 48%