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628 Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs
628 Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $192,000 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 Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income (s) Compute the annual net cash flow. (b) Compute the payback period. (c) Compute the accounting rate of return for this equipment Complete this question by entering your answers in the tabs below. $ 120,000 64,000 16,000 12,000 $.28,800 Required B Required C Compute the annual net cash flow. Annual Recults from Investment Sales of new product Expenses Malarials, labor and overhand (except dopreciation) Depredation Equipment Selling general, and administrative expenses Income Incoma Cach Flow 120.000 64,000 16.000 12.000 28.000 Required By
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