Lakeside Incorporated is considering replacing old production equipment with state$-$of$-$the$-$art technology that will

allow production cost savings of $$10,000$ per month. The new equipment will have a five$-$year life and cost $$390,000,$

with an estimated salvage value of $$40,000.$ Lakeside's cost of capital is $10\%.$ Lakeside Incorporated uses a straight$-$

line depreciation method.

Required:

Calculate the payback period and the accounting rate of return for the new production equipment.

Note: Round your answers to $2$ decimal places.