M11-4 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 $254,000 and have a $50,800 salvage value in five years. The annual net income from the equipment is expected to be $30,480, and depreciation is S40,640 per year Calculate Blue Marlin's annual rate of return and payback perlod for the equlpment. (Do not round Intermediate calculations. Round your Payback Period to 2 decimal places.) Annual Rate of Retum Payback Period ears