E13.20 (LO 1. 5) Service Dryden Service Centre just purchased an automobile hoist for $18,600. The hoist has a five-year life and an estimated salvage value of $1,400. Installation costs and freight charges were $3,900 and $900, respectively. Dryden uses straight-line depreciation. Calculate the cash payback period and annual rate of return The new hoist will be used to replace mufflers and tires on automobiles, Dryden estimates that the new hoist will enable its mechanics to replace five extra mufflers per week. Each muffler sells for $75, installed. The cost of a muffler is $35, and the labour cost to install a muffler is $15. Instructions a. Calculate the payback period for the new hoist. b. Calculate the annual rate of return for the new hoist. (Round to one decimal)