Ivanhoe Company is considering a capital investment of $$182,400$ in additional productive facilities. The new machinery is expected to have a useful life of $5$ years with no salvage value. Depreciation is by the straight$-$line method. During the life of the investment, annual net income and net annual cash flows are expected to be $$15,048$ and $$48,000,$ respectively. Ivanhoe has a $12\%$ cost of capital rate, which is the required rate of return on the investment.

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$($a$)$

Compute the cash payback period. $($Royund answer to $1$ decimal place, e$.$g$.10\mathrm{.}5.)$

Cash payback period

years

Compute the annual rate of return on the proposed capital expenditure. $($Round answer to $2$ decimal places, e$.$g$.10\mathrm{.}52\%.)$

Annual rate of return $\%$