E11-1 (Algo)

need these two answered please

E11-1 (Algo) Calculating Accounting Rate of Return, Payback Period (LO 11-1, 11-2) Harwell Printing Co. is considering the purchase of new electronic printing equipment. It would allow Harwell to increase its net income by $45,864 per year. Other information about this proposed project follows: Tnitial investment Useful life Salvage value $252,000 5 years $ 92,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Harwell. (Round your percentage answer to 1 decimal place.) 2. Calculate the payback period for Harwell. (Round your answer to 2 decimal places.) % 1. Accounting Rate of Return 2. Payback Period years E11-7 (Algo) Deciding to Lease or Buy (LO 11-3, 11-5) Your friend Harold is trying to decide whether to buy or lease his next vehicle. He has gathered information about each option but is not sure how to compare the alternatives. Purchasing a new vehicle will cost $29,000, and Harold expects to spend about $750 per year in maintenance costs. He would keep the vehicle for five years and estimates that the salvage value will be $11,500. Alternatively, Harold could lease the same vehicle for five years at a cost of $3,770 per year, including maintenance. Assume a discount rate of 12 percent Required: 1. Calculate the net present value of Harold's options (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign. Round your final answers to 2 decimal places. Do not round intermediate calculations.) NPV Purchase Option Lease Option