Bartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $53,000 per year. Other information about this proposed project follows:
Initial investment $ 510,000
Useful life 8 years
Salvage value $ 50,000
Assume straight line depreciation method is used.
Required:
1.) Calculate the accounting rate of return for Bartlett.
Note: Round your percentage answer to 2 decimal places.
2.) Calculate the payback period for Bartlett.
Note: Round your answer to 2 decimal places.
