Sheridan Company is considering a capital investment of $369,600 in additional productive facilities. The new machinery is expected to have a useful life of 6 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 $18,480 and $84,000, respectively. Sheridan has an 9% cost of capital rate, which is the required rate of return on the investment. (a1) Your answer is correct. Compute the cash payback period. (Round answer to 2 decimal places, e.g. 2.25.) Cash payback period 4.40 years eTextbook and Media (a2) Attempts: 1 of 5 used Compute the annual rate of return on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 2.25%.) Annual rate of return %