Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost $256,000 and have a $51,200 salvage value in five years. The annual net income from the equipment is expected to be $30,720, and depreciation is $40,960 per year.

Required:

Calculate Blue Marlins accounting rate of return and payback period for the equipment.

Note: Do not round intermediate calculations. Round your Payback Period to 2 decimal places.