! Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.) Project A requires a $375,000 initial investment for new machinery with a five-year life and a salvage value of $44,500. The company uses straight-line depreciation. Project A is expected to yield annual net income of $20,400 per year for the next five years. QS 25-5 Payback period LO P1 Compute Project A's payback period. Payback Period / Choose Denominator: Choose Numerator: Payback Period Payback period Cost of investment 1 Annual net cash flow 0 ! Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.] Project A requires a $375,000 initial investment for new machinery with a five-year life and a salvage value of $44,500. The company uses straight-line depreciation. Project A is expected to yield annual net income of $20,400 per year for the next five years. QS 25-6 Accounting rate of return LO P2 Compute Project A's accounting rate of return. Accounting Rate of Return Choose Numerator: 1 Choose Denominator: = Accounting Rate of Return Accounting rate of return 1 0