The owner of Zivanov's Pancake House is considering an expansion of the business. He has identified two alternatives, as follows: Build a new restaurant near the mall Buy and renovate an old building downtown for the new restaurant. The projected cash flows from these two alternatives are shown below. The owner of the restaurant uses a 10 percent after-tax discount rate. Net After-Tax Cash Inflows Proposal Mall restaurant Downtown restaurant Cash Outflow Time 0 $400,000 200,000 Years 1-10 S50,000 35,800 Years 11-20 $50,000 Includes after-tax cash flows from all sources, including incremental revenue, incremental expenses, and depreciation tax shield. The owner of Zivanov's Pancake House will consider capital projects only If they have a payback period of slx years or less. The owner also favors projects that exhibit an accounting rate of return of at least 15 percent. The owner bases a project's accounting rate of return on the initial investment in the project. Required: 1. Compute the payback period for each of the proposed restaurant sites. (Round your answer to 1 decimal place.) Payback Period Mall restaurant years years restaurant 2. Compute the accounting rate of return for each proposed site. Assume the average annual incremental income is $50,000 for the mall restaurant and S35,800 for the downtown restaurant. (Round your "Percentage" answer to 1 decimal place (i.c., .1234 should be entered as 12.3).) Accounting Rate of Return Mall restaurant