Exercise 12-9 Legend Service Center just purchased an automobile holst for $37,200. The holst has an 8-year life and an estimated salvage value of $3,400. Installation costs and freight charges were $3,600 and $800, respectively. Legend uses straight-line depreciation. The new hoist will be used to replace mufflers and tires on automobiles. Legend estimates that the new hoist will enable his mechanics to replace 5 extra mufflers per week. Each muffler sells for $72 installed. The cost of a muffler is $37, and the labor cost to install a muffler is $15. (a) Compute the cash payback period for the new hoist. Cash payback period years (b) Compute the annual rate of return for the new holst. (Round answer to 2 decimal places, e.g. 10.52%.) Annual rate of return Click if you would like to Show Work for this question: Open Show Work