Wolverine Corp. 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 $50,100. The equipment will have an initial cost of $601,000 and have a 8-year life. The equipment has no salvage value. The hurdle rate is 10%. Ignore income taxes.

(Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables.) a. What is the accounting rate of return? (Round your answer to 2 decimal places.)

b. What is the payback period? (Round your answer to 1 decimal place.)

c. What is the net present value? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.)

d. What would the net present value be with a 14% hurdle rate? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.)