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(Ignore income taxes in this problem.) New Tattoo Parlor is considering a capital budgeting project....

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(Ignore income taxes in this problem.) New Tattoo Parlor is considering a capital budgeting project. This project will initially require a $25,000 investment in equipment and a $3,000 working capital investment. The useful life of this project is 6 years with an expected salvage value of zero on the equipment. The working capital will be released at the end of the 6 years. In addition, the new system will require a $2,000 retro fit at the end of year 4. The new system is expected to generate net cash inflows of $9,000 per year in each of the 6 years. Nevus' discount rate is 14%. The net present value of this project is closest to: (Ignore income taxes in this problem.) Henck Corporation is investigating automating a process by purchasing a new machine for $520,000 that would have a 8 year useful life and no salvage value. By automating the process, the company would save $134,000 per year in cash operating costs. The annual depreciation on the new machine would be $55,000. Required: Determine the simple rate of return on the investment to the nearest tenth of a percent and the payback period. Show your work

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