7. 07 points value Exercise 24-8 Payback period and accounting rate of return on investment LO P1, P2 B2B Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected to cost $240,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 96,000 units of the equipment's product each year. The expected annual income related to this equipment follows 150,000 Sales Costs Materials, labor, and overhead (except depreciation on new equipment) 80,000 Depreciation on new equipment 20,000 Selling and administrative expenses Total costs and expenses Pretax income 15,000 115,000 35.000 14,000 income taxes (40%) 21,000 Net income 1. Compute the payback period Choose Numerator:Choose Denominator