Sigma Company is considering a new investment that costs $400,000, has an 8 year life and no salvage value. Below is an income statement related to the investment's estimated annual revenues and expenses. Sales $556,000 Variable Expenses 330.000 Contribution Margin $226,000 Fixed Expenses Out of pocket cash expenses $ 86,000 Depreciation 50,000 136.000 Net operating income $ 90,000 The simple rate of return for this investment is closest to: 16.18% 22.50% 35.00% O 10.00% QUESTION 20 Theta Corporation is considering replacing an old machine with a new machine that costs $702,000, has a 9 year useful life and a $72,000 salvage value at the end of its life. If the new machine is purchased, the old machine will be sold immediately for its salvage value of $40,000. Annual cash inflows related to the new machine are $170,000 and will occur evenly throughout the years. The payback period of the new machine is closest to: 3.89 years 4.13 years 4.36 years 3.71 vears