(2) Compute the accounting rate of return for this equipment Accounting Rate of Return Choose Denominator Choose Numerator: Accounting Rate of Return Accounting rate of return | = Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture line. The equipment is expected to cost $285,000 and to have a five-year life and no salvage value. It will be depreciated on a straight-line basis. Business Solutions expects to sell 100 units of the equipment's product each year. The expected annual income related to this equipment follows. $376,000 Sales Costs Materials, labor, and overhead (except depreciation) Depreciation on new equipment Total costs and expenses Pretax income Income taxes (40%) Net income 193,000 57,000 32,500 282,500 93,500 37, 400 $ 56,100 Required: (1) Compute the payback period. Choose Numerator: Cost of investment Payback Period 7 Choose Denominator: = 1 Annual net cash flow 113,100 = Payback Period Payback period 0.0