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Harwell Printing Co. is considering the purchase of new electronic printing equipment. It would allow...

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Accounting

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Harwell Printing Co. is considering the purchase of new electronic printing equipment. It would allow Harwell to increase its net income by $91,756 per year. Other information about this proposed project follows: Initial investment Useful life Salvage value $452,000 7 years $109,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Harwell. (Round your percentage answer to 1 decimal place.) Accounting Rate of Return 2. Calculate the payback period for Harwell. (Round your answer to 2 decimal places.) Payback Period Years

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