Question 8 Legend Service Center just purchased an automobile hoist for $34,000. The hoist has an 8-year life and an estimated salvage value of $3,400. Installation costs and freight charges were $4,200 and $800 respectively. Legend uses straight-line depreciation. The new hoist will be used to replace mufflers and tires on automobiles. Legend estimates that the new hoist will enable his mechanics to replace 5 extra mufflers per week. Each muffler sells for $77 installed. The cost of a muffler is $38, and the labor cost to install a muffler is $14 Compute the cash payback period for the new hoist. Cash payback period years Compute the annual rate of return for the new host. (Round answer to 2 decimal places, e.g. 10.52%.) Annual rate of return Click if you would like to Show Work for this question: Qpen Show Work