Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $144,125. The equipment will have an initial cost of 5550,000 and have a 5 year life. If the salvage value of the equipment is estimated to be $180,000, what is the accounting rate of return? Ignore income taxes. Multiple Choice 12.75 10:25 2287 a 26.2016 Palmer Corp. is considering the purchase of a new plece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $197,000. The equipment will have an initial cost of $414,000 and have a Byear life. If the salvage value of the equipment is estimated to be $78,000, what is the payback period? Multiple Choice 173 years 2.10 years 2.85 years 800 years