1120 Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $408,000 and has a 12 year life and no salvage value. The expected annual income for each year from this equipment follows Sales of new product Materials, labor, and overhead (except depreciation) Selling, general, and administrative expenses (a) Compute the annual net cash flow (b) Compute the payback period. (c) Compute the accounting rate of return for this equipment. $255,000 136,000 25,500 by Required A Required B Required C Compute the annual net cash flow. Results from vestment Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation Equipment Selling, general, and administrative expenses Income ocume Flow 255,000 136,000 34,000 25,500 S 59,500