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Extra Practice Nick's Novelties is considering the purchase of electronic pinball machines to place in amusement parks. The machines would cost a total of $300,000, have an eight-year useful life, and have a total salvage value of $20,000. Based on experience with other equipment, the company estimates that annual revenues and expenses associated with the machines would be as follows: $200,000 Revenues: Expenses: Commissions to parks Insurance Depreciation Maintenance Net income $100,000 7,000 35,000 18,000 $40,000 The company's discount rate is 12%. 1. Compute the net annual cash inflows. 2. Compute the project's NPV. 3. Find the project's IRR. 4. Compute the project's payback period. 5. Compute the project's simple rate of return