E11-1 (Algo) Calculating Accounting Rate of Return, Payback Period (LO 11-1, 11-2] Harwell Printing Co. is considering the purchase of new electronic printing equipment. It would allow Harwell to increase its net income by $91,756 per year. Other information about this proposed project follows: Initial investment Useful life Salvage value $452,000 7 years $ 109,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Harwell. (Round your percentage answer to 1 decimal place.) 2. Calculate the payback period for Harwell. (Round your answer to 2 decimal places.) % 1. Accounting Rate of Return 2. Payback Period years