A and B

Dobson Corporation is considering the purchase of a new piece of equipment. The cost savings from the equipment would resuit in an annual increase in net income of $60,000. The equipment will bove an initiol cost of $509,000 and an 5 even year useful lifo with no expected salvage value, The hurdle rate is 12%. Required: a. Calculate the accounting rate of return. b. Calculate the payback period. Complete this question by entering your answers in the tabs below. Calculate the accounting rate of return. Note: Round your answer to 2 decimal places