Problem $1-$ Average rate of return

Determine the average rate of return for a project that is estimated to yield total income of $$507,600$ over

five years, has a cost of $$654,200,$ and has a $$97,800$ residual value. Round to the nearest whole percentage.

Problem $2-$ Cash payback period

A project has estimated annual net cash flows of $$35,000.$ It is estimated to cost $$122,500.$

Determine the cash payback period. If required, round your answer to one decimal place.