Flint Company is considering a capital investment of $$500,500$ in additional productive facilities. The new machinery is expected to have a useful life of $5$ years with no salvage value. Depreciation is computed by the straight$-$line method. During the life of the investment, annual net income and cash flows are expected to be $$47,000$ and $$143,000,$ respectively. Flint has a $12\%$ cost of capital rate, which is the minimum acceptable rate of return on the investment.

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$($a$)$

Compute the annual rate of return. $($Round answer to $1$ decimal place, e$.$g$.15\mathrm{.}5.)$

Annual rate of return $\%$

Compute the cash payback period on the proposed capital expenditure. $($Round answer to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Cash payback period years