MNO Pharmacy has purchased a small auto for delivery of prescriptions. The auto cost $28,000 and will be usable for seven years. Delivery of prescriptions (which the pharmacy has never done before) should increase revenues by at least $25,000 per year. The cost of these prescriptions will be about $18,000 per year. The pharmacy depreciates all assets by the straight-line method. (Ignore income taxes.) Required a Compute the payback period on the new auto. b. Compute the simple rate of return of the new auto POR Sales, Limited Comparative Income Statement Sales Cost of goods sold This Year Last Year $7,380,000 $5,606,800 4,750,000 3,511,000