Mini$-$Exercise $16-8($Static$)$ Payback period and accounting rate of return LO $16-9,16-10$

Lakeside Incorporated is considering replacing old production equipment with state$-$of$-$the$-$art technology that will allow production cost savings of $\backslash (\backslash$$ $7,500\backslash )$ per month. The new equipment will have a five$-$year life and cost $\backslash (\backslash$$ $320,000\backslash ),$ with an estimated salvage value of $\backslash (\backslash$$ $20,000\backslash ).$ Lakeside's cost of capital is $\backslash (12\backslash \%\backslash ).$ Lakeside Incorporated uses a straight$-$line depreciation method.

Required:

Calculate the payback period and the accounting rate of return for the new production equipment.

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