5.

B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $96,000 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 $ 60,000 Expenses Materials, labor, and overhead (except depreciation) 32,000 DepreciationEquipment 8,000 Selling, general, and administrative expenses 6,000 Income $ 14,000 (a) Compute the annual net cash flow. (b) Compute the payback period. (c) Compute the accounting rate of return for this equipment.