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 $96,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 38,400 units of the equipment's product each year. The expected annual income related to this equipment follows. $ 60,000 Sales Coats 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 (30) Net income 32,000 8,000 6,000 46,000 14.000 4,200 9,800 $ 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 1 Required 2 Compute the payback period. Payback Period Choose Numerator Choose Denominator Payback Period Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the payback period. Payback Period Choose Numerator: Choose Denominator: Payback Period Net income 7 Annual net cash flow 9,800/ $ 8,000 Payback period 1.23 years 11 $ Required 2 > Required 1 Required 2 Required 2 Compute the accounting rate of return for this equipment. Accounting Rate of Return Choose Denominator: Choose Numerator: Accounting Rate of Return Accounting rate of return 0