A mini-mart needs a new freezer and the initial investment will cost $320,000. Incremental revenues, including cost savings, are $201,000, and incremental expenses, including depreciation, are $121,000. There is no salvage value. What is the accounting rate of return (ARR)?

fill in the blank 1%

If a garden center is considering the purchase of a new tractor with an initial investment cost of $134,000, and the center expects a return of $28,000 in year one, $22,000 in years two and three, $13,000 in years four and five, and $12,000 in year six and beyond, what is the payback period?

fill in the blank 1 years