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 Costs Materials, labor, and overhead (except depreciation on new equipment) 32,000 Depreciation on new equipment 8,000 6,000 Selling and administrative expenses 46,000 Total costs and expenses 14,000 Pretax income 7,000 Income taxes (50%) 7,000 Net income 1. Compute the payback period Payback Period Choose Numerator: Choose Denominator: Payback Period Cost of investment Annual net cash flow Payback period