Dobson Corporation 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 $53,000. The equipment will have an initial cost of $506,000 and an eight year useful life with no expected salvage value. The hurdle rate is 14%

a) Calculate the accounting rate of return (round to 2 decimal places)

b) Calculate the payback period. (round to one decimal place)