E11-2 (Algo) Calculating Accounting Rate of Return, Payback Period [LO 11-1, 11-2] Bartlett Car Wash Co. is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $89,240 per year. Other information about this proposed project follows: Initial investment Useful life Salvage value $429,040 8 years $ 54,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett. (Round your percentage answer to 2 decimal places 2. Calculate the payback period for Bartlett. (Round your answer to 2 decimal places.) * Answer is complete but not entirely correct. 1. 2. Accounting Rate of Return Payback Period 9.87 X % 4.20 X years 4.20