Questions 4 and 5 are based on the following data: Chow Company has gathered the following data on a proposed investment project: Present investment required $142,500 Annual cash inflows $ 30,000 Life of the investment 8 years Cost of capital 10%

4. The payback period for the investment would be: A. 8.00 years C. 4.75 years B. 1.42 years D. 0.21 years

5. The simple rate of return on the investment would be: A. 8.55% C. 21.05% B. 10.00% D. 33.55%