Petra Co is evaluating an investment that requires a $1,125,000 and 8 years life. The salvage-21 value of the required investment is 0. The net operating income will be as follows for the life of the :project Sales. $650,000 Less cash variable expenses. .230,000 Contribution margin......... .420,000 Less fixed expenses Fixed cash expenses.........$170,000 Depreciation expenses........32.500 202,500 Net operating income... ...$217,500 The company's required rate of return is 12%. The payback period for this project is closest to (Ignore cincome taxes in this problem) 55 O 0 Nothing mentioned ( ) 40 50 3.50 30 45 O Metallic Co. is studying an investment in a special equipment that would have an ten-year life and -22 would require a $120,000 investment which has no salvage value. Metallic Co uses the straight-line .method for depreciation. The payback period of the project will be 4 years Required: compute the simple rate of return (SRR) on the equipment (Ignore income taxes in this ?problem) 0 Nothing mentioned ( ) %15 O %125 O %18. %20O 917 5 %10 O