Upham Corporation is considering the purchase of a machine costing $16,000. Estimated cash savings from using the new machine are $4,114 per year. The machine will have no salvage value at the end of its useful life of six years and the required rate of return for Upham Corporation is 12%. The machine's internal rate of return is closest to: 8% O 10% O 12% O 14% 06% Cecelia Verdon operates an after-hours nightclub. She estimates a new VOID Acoustics sound system with a 4-year useful life will generate increased cash inflows of $135,000 per year for each year the equipment is in use. Cash operating expenses associated with the new equipment will be $10,000 per year. The equipment will have no salvage value at the end of its useful life. If Miss Verdon's required rate of return is 10%, then what is the most she should be willing to pay for the new VOID sound system? (Note: There may be rounding error depending on the discount factor you use. Choose the answer closest to the one you calculate.) O $300,150 $335.000 O $396,250 O $447,950 $500,000 RAM Corporation recently accepted an investment opportunity that requires a $400,000 cash investiment in an asset with a useful life of 20 years. The investment has a payback period of 8 years and the asset has no salvage value. The asset is depreciated using the straight-line method. What is the accounting rate of return on RAM's investment? 8.67% O 7.50% O 5.00% O 15.67% None of the above