whats the accounting rate of return

Lakeside Inc. is considering replacing old production equipment with state-of-theart technology that will allow production cost savings of $5,000 per month. The new equipment will have a ve-year life and cost $225,000, with an estimated salvage value of $30,000. Lakeside's cost of capital is 10%. Lakeside Inc. uses a straight-line depreciation method. Requlred: Calculate the payback period and the accounting rate of return for the new production equipment. {Round your answers to 2 decimal places} Payback period Accounting rate of return