Oriental Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment $ 200,000 Annual net cash flows $ 40,000 Life of the equipment 10 years Salvage value $ 0 Discount rate 10 % Assume cash flows occur uniformly throughout a year except for the initial investment. The simple rate of return on the investment would be: 10% O 15% O 35% 0 20% Oriental Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment $ 200,000 Annual net cash flows $ 40,000 Life of the equipment 10 years Salvage value $0 Discount rate 10 % Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period for the investment would be: O 2.41 years O 5 years O 10 years O 0.25 years QuestioITU Golab Roofing is considering the purchase of a crane that would cost $69,846, would have a useful life of 6 years, and would have no salvage value. The use of the crane would result in labor savings of $13,250 per year. The simple rate of return on the investment in the crane is closest to (Ignore income taxes.): 18% 0 17% 0 30% 19%