Recording enter File Window Help Smart Pro Chapter 14.pdf pago) la Bott 8 years Small group problems Chapter 13 Problem A. Chee Corporation has gathered the following data on a proposed investment project: Investment required in equipment $240,000 Annual cash inflows $50,000 Salvage value SO Life of the investment Required rate of return 10% 1. The payback period for the investment is closest to: A. 0.2 years B. 2.5 years C. 4.8 years D. 5.0 years 2. The simple rate of return on the investment is closest to: A 12.5% B. 10.0% C. 20.8% D. 8.3% The company uses straight-line depreciation. Assume cash flows occur uniformly throughout a year except for the initial investment. Problem B. The Sawyer Corporation has $80,000 to invest and is considering two different projects, X and Y. The following data are available on the projects: Project Y Project X Cost of equipment needed now $80,000 Working capital requirement Annual cash operating inflows $23,000 Salvage value in 5 years $6,000 Both projects will have a useful life of 5 years at the $80.000 $18,000