Arveda 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 $432,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 172,800 units of the equipment's product each year. The expected annual income related to this equipment follows. $ 270,800 Sales Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (204) Net income 144,000 36,000 27,000 207,000 63,000 12,600 $ 50,400 1. Compute the payback period. 2. Compute the accounting rate of return for this equipment, Complete this question by entering your answers in the tabs below. Reguldod 1 Required 2 Compute the payback period. Choose Numerator: Payback Period Choose Denominator: Payback Porlod = Payback period 0 Required 2 > Arvada 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 $432,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 172,800 units of the equipment's product each year. The expected annual income related to this equipment follows 5270,000 Sales Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (201) Net income 144,000 36,000 27.000 207,000 63,800 12,600 $50,400 1. Compute the payback period. 2. Compute the accounting rate of return for this equipment. Complete this question by entering your answers in the tabs below. Required inquired 2 Compute the accounting rate of return for this equipment Accounting Rate of Retur Choose Numerator Choose Denominator Accounting Rate of toturn Accounting rate of rolum -