Project A requires a $280,000 initial investment for new machinery with a five-year life and a salvage value of $30,000. The company uses straight-line depreciation. Project A is expected to yield annual net income of $20,000 per year for the next five years.

A Compute Project A's payback period. Payback Period Choose Denominator: = Choose Numerator: Payback Period Payback period 0 Compute Project A's accounting rate of return. Accounting Rate of Return Choose Denominator: Choose Numerator: 1 = Accounting Rate of Return = Accounting rate of return