[The following information applies to the questions displayed below.] Project A requires a $435,000 initial investment for new machinery with a five-year life and a salvage value of $48,500. The company uses straight-line depreciation. Project A is expected to yield annual net income of $20,800 per year for the next five years.

Compute Project A's payback period.

Payback Period
	Choose Numerator:	/	Choose Denominator:	=	Payback Period
		/		=	Payback period
				=

(PLEASE FILL THE BLANK FOR BOTH)

Compute Project As accounting rate of return.

Accounting Rate of Return
Choose Numerator:	/	Choose Denominator:	=	Accounting Rate of Return
	/		=	Accounting rate of return