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 $480,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 192,000 units of the equipment's product each year. The expected annual income related to this equipment follows 300,000 Sales Costs Materials, labor, and overhead (except depreciation on new equipment) 160,000 40,000 30,000 230,000 70,000 35,000 $ 35,000 Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (50%) Net income 1. Compute the payback period. 2. Compute the accounting rate of return for this equipment. Compute the payback period. Payback Period Choose Numerator: Choose Denominator: Payback Period Payback period 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