Siesta Company Estimates the Following Cash Flows and Depreciation on a Project

Siesta Company estimates the following cash flows and depreciation on a project that will cost $200000 and will last 10 years with no salvage value: $\begin{array}{llr} \text {Revenues } &&\$80,000\\ \text { Sales revenue } &\\ \text {Operating expenses } &\\ \text { Salary expense } &\$32,000\\ \text {Depreciation expense } &20,000\\ \text { Miscellaneous expenses } &8,000&60,000\\ \text { Net Income } &&\$20,000\\\end{array}$
Instructions
(a) Calculate the expected annual rate of return on this project showing calculations to support your answer.
(b) Calculate the cash payback on this project showing calculations to support your answer.