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Rundle Rentals can purchase a van that costs $96,000; it has an expected useful life of three years and no salvage value. Rundle uses

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Rundle Rentals can purchase a van that costs $96,000; it has an expected useful life of three years and no salvage value. Rundle uses straight-line depreciation. Expected revenue is $47,888 per year. Assume that depreciation is the only expense associated with this investment. Required a. Determine the payback period. (Round your answer to 1 decimal place.) b. Determine the unadjusted rate of return based on the average cost of the investment. (Round your percentage answer to 1 decimal place (i.e., 0.234 should be entered as 23.4).) a. Payback period years b. Unadjusted rate of return %

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