Blue Spruce Inc. is considering modernizing its production facility by investing in new equipment and selling the old equiprnant. The

following information has been collectad on this imestment:

Depraciation is $$10,200$ per year for the ald aquipment. The straight$-$line depraciation mathod would be usad for the new equipmant

ovar an aight$-$year pariod with salvaga value of $$4,600.$

$($a$)$

Your answer is corract.

Determina the cash payback pariod. $($Ignora income tayas$)($Round answer to $3$ decimal places, e$.$g $15\mathrm{.}275.)$

Cash payback pariod

years

eTextbook and Medla

$($b$)$

Calculata the annual rate of return. $($Round answer to $2$ decimal places, e$\mathrm{.}8.15\mathrm{.}25\%)$

Annual rate of return