Lexington Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual Increase in cash flow of $100,000. The equipment will have an initial cost of $500,000 and have an 8-year life. There is no Salvage value of the equipment The hurdle rate is 8 Ignore Income taxes a. Calculate accounting rate of retum. (Round your answer to 2 decimal places.) Rated Retum b. Calculate payback period P 21H! Next > c. Calculate the direct labor rate variance. (Do not round you "Favorable" "Unfavorable", or "None" for no effect (1.e., ze Rate Varance d. Calculate the direct labore efficiency variance. (Indicate to for no effect (ie. zero varlance)) Efficiency Variance