Management at a coffee shop wants to install an espresso bar in that costs $180,000 and has a 10-year life. The espresso bar will generate annual net cash inflows of $30,000. Ignore time value of money, what is the payback period for the espresso bar?

a. 3 yrs b.12yrs c. 9 yrs d. 6yrs

Management at a coffee shop wants to install an espresso bar in that costs $180,000 and has a 10-year life. The espresso bar will generate $100,000 of incremental net operating income and $25,000 of incremental expenses. Ignore time value of money, what is the simple rate of return on the investment project?

a. 35% b. 20% c.30% d.25%