B$2$B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $$360,000$ 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 $$225,000$

Materials, labor, and overh$$ad $($except depreciation$)$

Selling, general, and administrative expenses $30,000$

Income

Hint

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$($a$)$ Compute the annual net cash flow.

$($b$)$ Compute the payback period.

$($c$)$ Compute the accounting rate of return for this equipment.

References

Complete this question by entering your answers in the tabs below.

Required A

Required C

Compute the annual net cash flow.

$\backslash$table$[[$Annual Results from Investment,Income,Cash Flow$],[$Sales of new product,$$,225,000],[$Expenses$],[$Materials$,$ labor, and overhead $($except depreciation$),,120,000,]]$