Siesta Company estimates the following annual cash flows and depreciation on a project that will cost $200,000 and will last 10 years with no salvage value:

Revenues

Sales revenue

$80,000

Operating expenses

		Salary expense	$32,000
		Depreciation expense	20,000

Miscellaneous expenses

8,000

60,000

Net Income

$20,000

Instructions (a) Calculate the expected annual rate of return on this project showing calculations to support your answer. (b) Calculate the cash payback on this project showing calculations to support your answer.