Lakeside Inc. is considering replacing old production equipment with state-of-the-art technology that will allow production cost savings of $5,000 per month. The new equipment will have a five-year life and cost $210,000, with an estimated salvage value of $40,000 Lakeside's cost of capital is 8%. Lakeside Inc. uses a straight-line depreciation method Required: Calculate the payback period and the accounting rate of return for the new production equipment. (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Payback period 3.50 years Accounting rate of return 20.80 %