Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expand its desert sunset tours. Various information about the proposed investment follows: $420,000 Initial investment (for two hot air balloons) 10 years Useful life Salvage value 50,000 37,800 Annual net income generated BBS's cost of capital 11 Assume straight line depreciation method is used Required Help BBS evaluate this project by calculating each of the following: 1. Accounting rate of return Accounting Rate of Return 2. Payback period. (Round your answer to 2 decimal places.) Payback Period Years