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Use the following information to analyze the two different investments given the three methods of NPV, Payback and Simple Rate of Return. Key information: two

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Use the following information to analyze the two different investments given the three methods of NPV, Payback and Simple Rate of Return. Key information: two different investments of $16,000 each and an interest rate of 5.0%. Year Investment A Investment B $4,000 50 $4,000 $4,000 $4,000 $4.000 SO $2,000 $8,000 $12.000 Total cash revenues Average return Less depreciation (straight line) $20,000 $4,000 -$3.200 $22,000 $4,400 $3.200 Average net revenue $800 $1.200 Question 57 (2 points) What is the payback period for investment A? One Year Two Years Four Years O Five Years Question 58 (2 points) What is the simple rate of return for investment B? O 5.5% 7.5% 27.5%

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