E$11-1($Algo$)$ Calculating Accounting Rate of Return, Payback Period $[$LO $11-1,11-2]$

Harwell Printing Company is considering the purchase of new electronic printing equipment. It would allow Harwell to increase its net

income by $$37,000$ per year. Other information about this proposed project follows:

Assume straight line depreciation method is used.

Required:

Calculate the accounting rate of return for Harwell.

Note: Round your percentage answer to $1$ decimal place.

Calculate the payback period for Harwell.

Note: Round your answer to $2$ decimal places.