You have the following information on a potential investment. Capital investment - $70,000 Estimated useful life - 5 years Estimated salvage value - zero Estimated annual net cash inflow - $20000 Required rate of return - 8% What is the net present value of the investment (to the nearest dollar)?

a. -56388

b. 20000

c. 9,854

d. 79854

You have the following information on a potential investment. Capital investment - $80,000 Estimated useful life - 5 years Estimated salvage value - 5000 Estimated annual net cash inflow - $6375 What is the annual rate of return on the investment (to the nearest dollar)?

a. 15 %

b. 50.3%

c. 16%

d. 17%