Dobson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income of $51,000. The equipment will have an initial cost of $506,000 and have an six year life. There is no salvage value of the equipment. The hurdle rate is 11%. Ignore income taxes. a. Calculate accounting rate of return. (Round your answer to 2 decimal places.)

b. Calculate payback period (Round your answer to one decimal place.)