Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Initial investment (2 limos) Useful life Salvage value Annual net income generated LLT's cost of capital $ 600,000 8 years $ 100,000 48,000 12% Assume straight line depreciation method is used. Required: Help LLT evaluate this project by calculating each of the following: 1. Accounting rate of return. Accounting Rate of Return % 2. Payback period. (Round your answer to 2 decimal places.) Payback Period Years