Sheridan Service Center just purchased an automobile hoist for $34,600. The hoist has an 8-year life and an estimated salvage value of $3,000. Installation costs and freight charges were $3,600 and $800, respectively. Sheridan uses straight- line depreciation The new hoist will be used to replace mufflers and tires on automobiles. Sheridan estimates that the new hoist will enable its mechanics to replace 5 extra mufflers per week. Each muffler sells for $77 installed. The cost of a muffler is $36, and the labor cost to install a muffler is $16. (a) Compute the cash payback period for the new hoist. Cash payback period years (b) Compute the annual rate of return for the new hoist. (Round answer to 2 decimal places, eg. 10.52%) Annual rate of return %