The payback method measures O how quickly investment dollars may be recovered O the cash flow from an investment. O the economic life of an investment the project profitability of an investment. The capital budgeting method that divides a project's annual incremental net operating income by the initial Investment is the: O internal rate of return method. O the simple rate of return method. O the payback method. O the net present value method. gnore income taxes in this problem.) Sue Falls is the president of Sports, Inc. She is considering buying a new machine that would cost $14,125. Sue has determined that the new machine promises an internel rate or return of 2% but Sue has msp aced the paper which tells the annual cost savings promised b the new machine She does remember at the machine has a pro ected life or o ears. sed on these data, the annual cost savings are O It is impossible to determine from the data given o $1,412.50 O $2,500.00 O $1695.00 A project requires an initial investment of $70,000 and has a project profitability index of 0.141. The present value of the future cash inflows from this investment is: O $61.350 O $68.920 O $75,210 O $79870