Lakeside, Inc., is considering replacing old production equipment with state-of-the-art technology that will allow production cost savings of $7,500 per month. The new equipment will have a five-year life and cost $337,500, with an estimated salvage value of $30,000. Lakesides cost of capital is 9%.

Required: Calculate the payback period and the accounting rate of return for the new production equipment. (Round your answers to 2 decimal places.)

Payback period		years
Accounting rate of return		%