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Your company is planning to purchase a new log splitter for its lawn and garden business. The new splitter has an initial investment of $148,000.

Your company is planning to purchase a new log splitter for its lawn and garden business. The new splitter has an initial investment of $148,000. It is expected to generate $20,000 of annual cash flows, provide incremental cash revenues of $170,996, and incur incremental cash expenses of $130,000 annually.

What is the payback period and accounting rate of return (ARR)? Round your answers to 1 decimal place.

Payback period years
ARR %

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