Ener go is considering buying a new water treatment system for its plant in Austin, Texas. The company screens its potential capital investments using the payback and accounting rate of return methods. If a potential investment has a payback of less than seven years and a minimum 15% accounting rate of return, it will be considered further. The data for the water treatment system follow: EEB (Click the icon to view the water treatment system data.) Read the requirements Requirement 1 . Compute the water treatment system's payback. (Round your answer to one decimal place, XX) Payback years Requirement 2. Compute the water treatment system's ARR. (Round the percentage to the nearest tenth percent, XX%.) ARR Requirement 3. Should Ener-go turn down this investment proposal or consider it further? seven years, and the accounting rate of return is The water treatment system proposal 15%. Ener-go should VThe payback is vthe proposal Data Table $ 52,800 Cost of water treatment system Estimated residual value Estimated annual net cash inflow (each year for 8 years) 11,000 from anticipated environmental cleanup savings Estimated useful life years