Legend Service Center just purchased an automobile hoist for $31,800. The hoist has an 8-year life and an estimated salvage value of $3,650. Installation costs and freight charges were $4,250 and $790, respectively. Legend uses straight-line depreciation. The new hoist will be used to replace mufflers and tires on automobiles. Legend estimates that the new hoist will enable his mechanics to replace 5 extra mufflers per week. Each muffler sells for $76 installed. The cost of a muffler is $36, and the labor cost to install a muffler is $13. Compute the cash payback period for the new hoist. (Round answer to 2 decimal places, e.g. 10.50) Cash payback period 5.25 years Compute the annual rate of return for the new hoist. (Round answer to 1 decimal place, e.g.10.5.) Annual rate of return 7.8