Culver Service Center just purchased an automobile hoist for $33,800. The hoist has an 8-year life and an estimated salvage value of $3,140. Installation costs and freight charges were $4,260 and $900, respectively. Culver uses straight-line depreciation.

The new hoist will be used to replace mufflers and tires on automobiles. Culver estimates that the new hoist will enable his mechanics to replace 5 extra mufflers per week. Each muffler sells for $74 installed. The cost of a muffler is $38, and the labor cost to install a muffler is $16.

Compute the cash payback penod for the new hoist. (Round answer to 2 decimal places, e.g. 10.5 Cash payback period 7.4 years Compute the annual rate of return for the new hoist. (Round answer to 1 decimal place, e.g. 10.5.) Annual rate of return Click if you would like to Show Work for this question: Open Show Work