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 $$432,000$ 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 $ $270,000$

Expenses

Materials, labor, and overhead $($except depreciation$)144,000$

Depreciation$$Equipment $36,000$

Selling, general, and administrative expenses $27,000$

Income $ $63,000$

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

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

$($c$)$ Compute the accounting rate of return for this equipment.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 $$432,000$ and has a $12-$year life and no salvage value. The expected annual income for each year from this

equipment follows.

$($a$)$ 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.

Required $A$

Required $B$

Required $C$

Compute the annual net cash flow.