Project A requires a $415,000 initial investment for new machinery with a five-year life and a salvage value of $40,500. Project A is expected to yield annual income of $21,500 per year and net cash flow of $103,750 per year for the next five years. Compute Project A's accounting rate of return. Accounting Rate of Return Denominator: Numerator: Accounting Rate of Return Accounting rate of return Compute the payback period for an investment with the following net cash flows. (Round your answer to one decimal place.) Year Initial investment 1. 2. 3. 4. 5. 6. Net Cash Flows per Year $ (118,000) 11,800 21,800 21,800 24,980 41,800 41,800 Cumulative Net Cash Flows $ (118,000) (106,200) (84,400) (62,600) (37,620) 4,180 45,980 Payback period years