$3$ points

$$ Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost $$251,000$ and have a $$50,200$ salvage value in five years. The annual net income from the equipment is expected to be $$30,120,$ and depreciation is $$40,160$ per year.

Required:

Calculate Blue Marlin's accounting rate of return and payback period for the equipment.

Note: Do not round intermediate calculations. Round your Payback Period to $2$ decimal places.