Old School Corporation is reviewing its method of evaluating capital expenditure proposals using the accounting rate of return method. A recent proposal involved a $$200,000$ investment in a machine that had an estimated useful life of five years and an estimated salvage value of $$20,000.$ The cash flow from the new machine was expected to increase net income before depreciation expense by $$56,000$ per year. OldSchool' current policy for approving a new investment is that it has a rate of return of $12\%$ and a payback period of three years or less.

Required:

a$.$ Calculate the accounting rate of return on this investment for the first year. Assume straight$-$line depreciation.

b$.$ Calculate the payback period for this investment.

Note: For all requirements, round your final answers to $2$ decimal places.

$\backslash$table$[[$a$.$ Accounting rate of return,,$\%$