1.

If an asset costs $75,235 and is expected to have a salvage value of $3,598 at the end of five year life, and generates annual cash net cash inflows of $5,931 each year, the cash payback period rounding to two decimal places is

2.

The initial investment is $113,610 and the salvage value is $10,000. The project is expected to generate $27,326 net cash inflows and the annual net income is $4,264. State the annual rate of return in decimal form to two decimal places. (For example, if you calculate 16%, then state your answer as .16)