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I know for certainty that the payback period is correct. However after extensive searching, still can't figure out the answer for the unadjusted rate of return using an average annual income method. Any help and explanation would be greatly appreciated.

update: Solved

5 Fanning Electronics is considering investing in manufacturing equipment expected to cost $250,000. The equipment has an estimated useful life of four years and a salvage value of $19,000. It is expected to produce incremental cash revenues of $125,000 per year. Fanning has an effective income tax rate of 40 percent and a desired rate of return of 12 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) 16.66 points Required eBook Print a. Determine the net present value and the present value index of the investment, assuming that Fanning uses straight-line depreciation for financial and income tax reporting. b. Determine the net present value and the present value index of the investment, assuming that Fanning uses double-declining-balance depreciation for financial and income tax reporting. References d. Determine the payback period and unadjusted rate of return (use average investment), assuming that Fanning uses straight-line depreciation. e. Determine the payback period and unadjusted rate of return (use average investment), assuming that Fanning uses double-declining-balance depreciation. (Note: Use average annual cash flow when computing the payback period and average annual income when determining the unadjusted rate of return.) Complete this question by entering your answers in the tabs below. Req A and B Reg D and E Determine the payback period and unadjusted rate of return (use average investment), assuming that Fanning uses straight- line depreciation and double-declining-balance depreciation. (Note: Use average annual cash flow when computing the payback period and average annual income when determining the unadjusted rate of return.) (Round your answers to 2 decimal places.) Show less A computing the payback return.) References Complete this question by entering your answers in the tabs below. Req A and B Reg D and E Determine the payback period and unadjusted rate of return (use average investment), assuming that Fanning uses straight- line depreciation and double-declining-balance depreciation. (Note: Use average annual cash flow when computing the payback period and average annual income when determining the unadjusted rate of return.) (Round your answers to 2 decimal places.) Show less Payback Period Unadjusted Rate of Return % 2.55 years d. Straight-line method Double-declining-balance method % 2.55 years .