Payback and ARR

Each of the following scenarios is independent. All cash flows are after$-$tax cash flows.

Required:

Michael Kimathi has purchased a tractor for $$86,250.$ He expects to receive a net cash flow of $$30,500$ per year from the investment. What is the payback period for Michael?

Round your answer to two decimal places.

$$ years

$2.$ Bertha Lafferty invested $$357,500$ in a laundromat. The facility has a $10-$year life expectancy with no expected salvage value. The laundromat will produce a net cash flow of $$113,000$ per year. What is the accounting rate of return? Enter your answer as a whole percentage value $($for example, $16\%$ should be entered as $"16"$ in the answe box$).$

$x\%$

$3.$ Melannie Bayless has purchased a business building for $$322,000.$ She expects to receive the following cash flows over a $10-$year period:

Year $1$: $$43,500$

Year $2$: $$58,500$

Year $3-10$:$$84,600$

What is the payback period for Melannie? Round your answer to one decimal place.

$\sqrt[\phantom{2}]{?}$ years

What is the accounting rate of return? Enter your answer as a whole percentage value $($for example, $16\%$ should be entered as $"16"$ in the answer box$).$

$x\%$