Michael Inc. is considering two alternative investment proposals with the following data:

Refer to Michael Inc. what is the accounting rate of return for proposal X?

Refer to Michael Inc. how long is the payback period for proposal y

Michael Inc. is considering two alternative investment proposals with the following data: S Proposal | $ 812,500 8 years Proposal Y $ 390,000 8 years Investment Useful life Estimated annual net cash inflows for 8 years Residual value Depreciation method Required rate of return $ 125,000 $ 40,000 Straight-line 14% $ 78,000 $ Straight-line 10% Refer to Michael Inc. What is the accounting rate of return for Proposal X? 4.22% 27.27% Cannot be calculated with information provided 3.50% 15.38% Refer to Michael, Inc. How long is the payback period for Proposal Y? 5.00 years Cannot be determined with the information provided 9.75 years 20.31 years 6.50 years