Current Attempt in Progress

Concord Service Center just purchased an automobile hoist for $$33,900.$ The hoist has an $8-$year life and an estimated salvage value of $$3,000.$ Installation costs and freight charges were $$4,200$ and $$900,$ respectively. Concord uses straight$-$line depreciation. mechanics to replace $5$ extra mufflers per week. Each muffler sells for $$74$ installed. The cost of a muffler is $$35,$ and the labor cost to install a muffler is $$14.$

$($a$)$

Compute the cash payback period for the new hoist.

Cash payback period years

$($b$)$

Compute the annual rate of return for the new hoist. $($Round answer to $2$ decimal places, e$.$g$.10\mathrm{.}52\%.)$

Annual rate of return