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 $384,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 153,600 units of the equipment's product each year. The expected annual income related to this equipment follows.

Sales $ 240, 090 Costs Materials, labor, and overhead (except depreciation on new equipment) 128,090 Depreciation on new equipment 32, 090 Selling and administrative expenses 24, 090 Total costs and expenses 184, 090 Pretax income 56,090 Income taxes (50%) 28, 000 Net income 28,090Complete 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 Cost of investment Annual net cash flow = Payback period 384,000 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: = Accounting Rate of Return Accounting rate of return 0 Sales $ 235,090 Costs Materials, labor, and overhead (except depreciation on new equipment) 82,900 Depreciation on new equipment 47, 090 Selling and administrative expenses 23, 500 Total costs and expenses 152, 500 Pretax income 82,500 Income taxes (30%) 24, 750 Net income 57,750Chart Values are Based on: % Select Chart Amount X PV Factor Present Value O Net present value