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 $$336,000$ 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

$($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.

$\backslash$table$[[\backslash$table$[[$Annual Results from Investment$],[$Sales of new product$]],$Income,Cash Flow$],[$$$,210,000],[$Expenses$],[$Materials$,$ labor, and overhead $($except depreciation$),,112,000,],[$Depreciation$-$Equipment,,$28,000,],[$Selling$,$ general, and administrative expenses,,$21,000,],[$Income$,$$$,49,000,],[$Net cash flow,,,$]]$