M$11-5($Algo$)$ Calculating Accounting Rate of Return, Payback Period $[$LO $11-1,11-2]$

Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost $$257,000$ and have a $$51,400$ salvage value in five years. The annual net income from the equipment is expected to be $$28,270,$ and depreciation is $$41,120$ per year.

Required:

Calculate Blue Marlin's accounting rate of return and payback period for the equipment.

Note: Do not round intermediate calculations. Round your Payback Period to $2$ decimal places.

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