ACCOUNTING HW THX

1. A project has estimated annual net cash flows of $37,500. It is estimated to cost $172,500.

Determine the cash payback period. If required, round your answer to one decimal place. years

2. Determine the average rate of return for a project that is estimated to yield total income of $271,080 over three years, has a cost of $893,600, and has a $110,400 residual value. Round to the nearest whole number. %