Harwell Printing Company is considering the purchase of new electronic printing equipment. It would allow Harwell to increase its net income by $61,088 per year. Other information about this proposed project follows:

Initial investment $ 332,000

Useful life 7 years

Salvage value $ 94,000

Assume straight line depreciation method is used.

Required:

1. Calculate the accounting rate of return for Harwell.

Note: Round your percentage answer to 1 decimal place.

2. Calculate the payback period for Harwell.

Note: Round your answer to 2 decimal places.