1. What is the accounting rate of return for a project that is estimated to yield total income of $345,000 over three years and costs $857,000? (Round your answer to 2 decimal places.)

Accounting rate of return: ____%

2. A project has estimated annual net cash flows of $63,000 and is estimated to cost $352,800. What is the payback period? (Round your answer to 2 decimal places.)

Payback Period: ____ Years

3. Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost $244,000 and have a $48,800 salvage value in five years. The annual net income from the equipment is expected to be $29,280, and depreciation is $39,040 per year.

Calculate Blue Marlin