Tucker company is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income of $80,000. The equipment will have an initial cost of $200,000 and have a 10-year life. There is no salvage value of the equipment. The hurdle rate is 20%. Ignore income taxes What is the accounting rate of retum? 50% 20% 25% 40% QUESTION 28 Refer to Tucker company. What is the payback period? 4 years O2 years 3 years 2.5 years