Beacon Company is considering purchasing new equipment for $355,950. The equipment has a 5-year useful life, and depreciation would be $71,190 (assuming straight-line depreciation and zero salvage value). The purchase of the equipment should increase net income by $41,800 each year for 5 years.

(a) Compute the annual rate of return.

(b) Compute the cash payback period.

Do not copy from Chegg and give complete answer with explanation