Exercise 19-7 Payback and ARR Each of the following scenarios is independent. All cash flows are after-tax cash flows. Required: 1. Michael Kimathi has purchased a tractor for $93,750. He expects to receive a net cash flow of $31,250 per year from the investment. What is the payback period for Michael? 2. Bertha Lafferty invested $360,000 in a laundromat. The facility has a 10-year life expec- tancy with no expected salvage value. The laundromat will produce a net cash flow of $108,000 per year. What is the accounting rate of return? 3. Melannie Bayless has purchased a business building for $336,000. She expects to receive the following cash flows over a 10-year period: Year 1: $42,000 Year 2: $58,800 Years 3-10: $84,000 What is the payback period for Melannie? What is the accounting rate of return