E11-2 (Algo) Calculating Accounting Rate of Return, Payback Period [LO 11-1, 11-2] Bartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $68,864 per year. Other information about this proposed project follows: Initial investment Useful life Salvage value $ 326,370 6 years $ 45,000 S Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett. Note: Round your percentage answer to 2 decimal places. 2. Calculate the payback period for Bartlett. Note: Round your answer to 2 decimal places. 1. Accounting Rate of Return 2. Payback Period % years

Bartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $68,864 per year. Other information about this proposed project follows: Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett. Note: Round your percentage answer to 2 decimal places. 2. Calculate the payback period for Bartlett. Note: Round your answer to 2 decimal places