Sandhill Company is considering a capital investment of $189,000 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $11,529 and $54,000, respectively. Sandhill has a 12% cost of capital rate, which is the required rate of return on the investment. Click here to view PV table. Compute the cash payback period. (Round answer to 2 decimal places, eg. 10.50.) Cash payback period years Compute the annual rate of return on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 10.52%.) Annual rate of return