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Rodriguez Inc. is considering a project that costs $200,000. The company expects the annual cash revenues to be $75,000 and annual expenses (including depreciation) to be $30,000. The project has a ten-year useful life and a residual value of $25,000. Assume Rodriguez Inc. uses straight line method of depreciation.

Using the above information for Rodriguez, the accounting rate of return for the project is

(Round your answer to a whole percent)

a.	51 percent.
b.	22 percent.
c.	67 percent.
d.	40 percent.

Using the above information for Rodriguez, the project's payback period is

(Round your final answer to two decimal places.)

a.	2.31 years.
b.	3.20 years.
c.	2.14 years.
d.	2.50 years.