Vilas Company is considering a capital investment of $191,600 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $11,270 and $49,180, respectively. Vilas has a 12% cost of capital rate, which is the required rate of return on the investment. Compute the cash payback period. Compute the annual rate of return on the proposed capital expenditure