Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.] Project A requires a $395,000 initial investment for new machinery with a five-year life and a salvage value of $45,500. The company uses straight-line depreciation. Project A is expected to yield annual net income of $22,200 per year for the next five years. QS 24-5 Payback period LO P1 Compute Project A's payback period. Payback Period Choose Denominator: Annual net cash flow Choose Numerator: Cost of investment Payback Period = Payback period 0 Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.) Project A requires a $395,000 initial investment for new machinery with a five-year life and a salvage value of $45,500. The company uses straight-line depreciation. Project A is expected to yield annual net income of $22,200 per year for the next five years. QS 24-6 Accounting rate of return LO P2 Compute Project A's accounting rate of return. Accounting Rate of Return Choose Denominator: 1 Choose Numerator: Cost of goods sold = Accounting Rate of Return Accounting rate of return 0