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3. E11-2 (Algo) Calculating Accounting Rate of Return, Payback Period [LO 11-1, 11-2] Bartlett...

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Accounting

3.

E11-2 (Algo) Calculating Accounting Rate of Return, Payback Period [LO 11-1, 11-2]

Bartlett Car Wash Co. is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $93,877 per year. Other information about this proposed project follows:

Initial investment $ 464,740
Useful life 9 years
Salvage value $ 43,000

Assume straight line depreciation method is used.

Required:

1. Calculate the accounting rate of return for Bartlett. (Round your percentage answer to 2 decimal places.)

2. Calculate the payback period for Bartlett. (Round your answer to 2 decimal places.)

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