Harwell Printing Co. is considering the purchase of new electronic printing equipment. It would allow Harwell to increase its net income by $79,992 per year. Other information about this proposed project follows:

Initial investment	$	396,000
Useful life		6	years
Salvage value	$	108,000

Assume straight line depreciation method is used.

Required:
1.	Calculate the accounting rate of return for Harwell

2.	Calculate the payback period for Harwell. (Round your answer to 2 decimal places.)