Harwell Printing Co. is considering the purchase of new electronic printing equipment. It would allow Harwell to increase its net income by $52,734 per year. Other information about this proposed project follows:           Initial investment $ 282,000   Useful life   5 years Salvage value $ 97,000     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.)            2. Calculate the payback period for Harwell. (Round your answer to 2 decimal places.)

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.