Managerial accounting chapter 11. Thank you

Blue Martn Company is considering the purchase of new equipment for its factory. It will cost $250 000 and hove a $60 000 salvage value in five years The annual net income from the equipment is expected to be $25,000. and depreciation is $40,000 per year. Calculate Blue Martin's annual rate of return and payback period for the equipment (Round your Payback Period 2 decimal places )