Acme Company is considering replacing outdated production equipment that will allow for production cost savings of $$20,000$ per month. The new equipment will have a five$-$year life and cost $$800,000,$ with an estimated salvage value of $$50,000.$ Acme's cost of capital is $10\%.$

Required:

Calculate the payback period and the accounting rate of return for the new production equipment. Assume straight$-$line depreciation.

Note: Round your payback period answer to $2$ decimal places and accounting rate of return answer to $1$ decimal place.

Answer is not complete.

$\backslash$table$[[$Payback period,$3\mathrm{.}33,$years$],[$Accounting rate of return,,$\%$