Carter and Company is trying to decide which of two investments they should consider. The following information is available: Investment A Investment B Cost $ 400,000 $ 600,000 Salvage value 0 40,000 160,000 Annual cash flow 104,000 Each investment is expected to have a useful life of 5 years. Required: (A) What is the rate of return on average investment of (1) Investment A and (2) Investment B? (B) What is the payback period of (1) Investment A and (2) Investment B? (Round your answers to two decimal points.)