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M 1 1 - 5 ( Algo ) Calculating Accounting Rate of Return, Payback Period [ LO 1 1 - 1 , 1 1 -

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M11-5(Algo) Calculating Accounting Rate of Return, Payback Period [LO 11-1,11-2]
Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost $256,000 and have a $51,200 salvage value in five years. The annual net income from the equipment is expected to be $30,720, and depreciation is $40,960 per year.
Required:
Calculate Blue Marlin's accounting rate of return and payback period for the equipment.
Note: Do not round intermediate calculations. Round your Payback Period to 2 decimal places.
\table[[Accounting Rate of Return,%
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