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 $168.000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 67,200 units of the equipment's product each year. The expected annual Income related to this equipment follows. $ 105,000 Sales Costs 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 (38%) Net income 56.888 14,000 10,500 80,500 24, see 7,350 17.150 1. Compute the payback period. 2. Compute the accounting rate of return for this equipment. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the payback period. Denominator = Payback Period Payback Period Choose Numerator: Cost of investment 168,000 Payback Period 1 Choose Annual net cash flow $ 287.000 x Payback period 0.59 years = Required 2 > 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 $168.000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 67,200 units of the equipment's product each year. The expected annual Income related to this equipment follows. $ 185, eee Sales Costs 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 (36X) Net Income 56,000 14.00 10,500 88.500 24.580 7,35 17.158 $ 1. Compute the payback period. 2 Compute the accounting rate of return for this equipment. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 ... Compute the accounting rate of return for this equipment. Accounting Rate of Return Choose Numerator: Choose Denominator Annual after-tax net o li Annual average investment income 14,700 / $ 84,000 Accounting Rate of Return Accounting rate of return 17.50 % = Required 1 Required 2 >