Sunshine Printing Ltd. is in need of a 3D printer. It has received two proposals, with related facts as follows:

Proposal A Proposal B Cost of printer $90,000 $90,000 Annual cash flows in operations: Year 1 80,000 90,000 Year 2 10,000 0 Year 3 45,000 0 Estimated life 3 years 1 year The company uses straight-line depreciation for all capital assets. Compute both the payback period, and the accounting rate of return for each proposal. Use a required rate of return of 12%