Your company is planning to purchase a new log splitter for its lawn and garden business. The new splitter has an initial investment of $160,000. It is expected to generate $20,000 of annual cash flows, provide incremental cash revenues of $163,040, and incur incremental cash expenses of $120,000 annually. What is the payback period and accounting rate of return (ARR)? Round your answers to 1 decimal place. Payback period ARR years %